Correlation Between Bangkok Dusit and Kulthorn Kirby
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Kulthorn Kirby 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 Dusit and Kulthorn Kirby into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Dusit Medical and Kulthorn Kirby Public, you can compare the effects of market volatilities on Bangkok Dusit and Kulthorn Kirby 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 Dusit with a short position of Kulthorn Kirby. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Kulthorn Kirby.
Diversification Opportunities for Bangkok Dusit and Kulthorn Kirby
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bangkok and Kulthorn is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Kulthorn Kirby Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kulthorn Kirby Public and Bangkok Dusit 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 Dusit Medical are associated (or correlated) with Kulthorn Kirby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kulthorn Kirby Public has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Kulthorn Kirby go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Kulthorn Kirby
If you would invest 4.00 in Kulthorn Kirby Public on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Kulthorn Kirby Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Kulthorn Kirby Public
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Kulthorn Kirby Public |
Bangkok Dusit and Kulthorn Kirby Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Kulthorn Kirby
The main advantage of trading using opposite Bangkok Dusit and Kulthorn Kirby positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Kulthorn Kirby 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 Kulthorn Kirby will offset losses from the drop in Kulthorn Kirby's long position.| Bangkok Dusit vs. CP ALL Public | Bangkok Dusit vs. Central Pattana Public | Bangkok Dusit vs. Airports of Thailand | Bangkok Dusit vs. Kasikornbank Public |
| Kulthorn Kirby vs. Asia Aviation Public | Kulthorn Kirby vs. Bangkok Dusit Medical | Kulthorn Kirby vs. Bangkok Expressway and | Kulthorn Kirby vs. Airports of Thailand |
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 Stocks Directory module to find actively traded stocks across global markets.
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