Correlation Between Bangkok Life and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Bangkok Life 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 Life 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 Life Assurance and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Bangkok Life 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 Life with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Life and Kiatnakin Phatra.
Diversification Opportunities for Bangkok Life and Kiatnakin Phatra
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bangkok and Kiatnakin is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Life Assurance 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 Life 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 Life Assurance 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 Life i.e., Bangkok Life and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Bangkok Life and Kiatnakin Phatra
Assuming the 90 days trading horizon Bangkok Life Assurance is expected to under-perform the Kiatnakin Phatra. In addition to that, Bangkok Life is 2.09 times more volatile than Kiatnakin Phatra Bank. It trades about -0.22 of its total potential returns per unit of risk. Kiatnakin Phatra Bank is currently generating about -0.03 per unit of volatility. If you would invest 5,225 in Kiatnakin Phatra Bank on September 14, 2024 and sell it today you would lose (50.00) from holding Kiatnakin Phatra Bank or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Life Assurance vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Bangkok Life Assurance |
| Kiatnakin Phatra Bank |
Bangkok Life and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Life and Kiatnakin Phatra
The main advantage of trading using opposite Bangkok Life and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Life 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 Life vs. KGI Securities Public | Bangkok Life vs. Lalin Property Public | Bangkok Life vs. Hwa Fong Rubber | Bangkok Life vs. MCS Steel Public |
| Kiatnakin Phatra vs. KGI Securities Public | Kiatnakin Phatra vs. Lalin Property Public | Kiatnakin Phatra vs. Hwa Fong Rubber | Kiatnakin Phatra vs. MCS Steel 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |