Correlation Between Bangkok Chain and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Bangkok Chain and Kiatnakin Phatra at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bangkok Chain and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Chain Hospital and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Bangkok Chain and Kiatnakin Phatra and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bangkok Chain with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Chain and Kiatnakin Phatra.
Diversification Opportunities for Bangkok Chain and Kiatnakin Phatra
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bangkok and Kiatnakin is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Chain Hospital and Kiatnakin Phatra Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiatnakin Phatra Bank and Bangkok Chain is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bangkok Chain Hospital are associated (or correlated) with Kiatnakin Phatra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiatnakin Phatra Bank has no effect on the direction of Bangkok Chain i.e., Bangkok Chain and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Bangkok Chain and Kiatnakin Phatra
Assuming the 90 days trading horizon Bangkok Chain Hospital is expected to generate 1.05 times more return on investment than Kiatnakin Phatra. However, Bangkok Chain is 1.05 times more volatile than Kiatnakin Phatra Bank. It trades about -0.01 of its potential returns per unit of risk. Kiatnakin Phatra Bank is currently generating about -0.03 per unit of risk. If you would invest 1,901 in Bangkok Chain Hospital on September 3, 2024 and sell it today you would lose (241.00) from holding Bangkok Chain Hospital or give up 12.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Chain Hospital vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Bangkok Chain Hospital |
| Kiatnakin Phatra Bank |
Bangkok Chain and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Chain and Kiatnakin Phatra
The main advantage of trading using opposite Bangkok Chain and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Chain position performs unexpectedly, Kiatnakin Phatra can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kiatnakin Phatra will offset losses from the drop in Kiatnakin Phatra's long position.| Bangkok Chain vs. Bangkok Dusit Medical | Bangkok Chain vs. Chularat Hospital Public | Bangkok Chain vs. Bumrungrad Hospital Public | Bangkok Chain vs. Advanced Info Service |
| Kiatnakin Phatra vs. TISCO Financial Group | Kiatnakin Phatra vs. Kasikornbank Public | Kiatnakin Phatra vs. Thanachart Capital Public | Kiatnakin Phatra vs. SCB X Public |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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