Correlation Between BCAP SET100 and WISE KTAM
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By analyzing existing cross correlation between BCAP SET100 and WISE KTAM CSI, you can compare the effects of market volatilities on BCAP SET100 and WISE KTAM 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 BCAP SET100 with a short position of WISE KTAM. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCAP SET100 and WISE KTAM.
Diversification Opportunities for BCAP SET100 and WISE KTAM
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BCAP and WISE is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding BCAP SET100 and WISE KTAM CSI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WISE KTAM CSI and BCAP SET100 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 BCAP SET100 are associated (or correlated) with WISE KTAM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WISE KTAM CSI has no effect on the direction of BCAP SET100 i.e., BCAP SET100 and WISE KTAM go up and down completely randomly.
Pair Corralation between BCAP SET100 and WISE KTAM
Assuming the 90 days trading horizon BCAP SET100 is expected to generate 0.38 times more return on investment than WISE KTAM. However, BCAP SET100 is 2.64 times less risky than WISE KTAM. It trades about 0.1 of its potential returns per unit of risk. WISE KTAM CSI is currently generating about 0.02 per unit of risk. If you would invest 891.00 in BCAP SET100 on August 27, 2024 and sell it today you would earn a total of 86.00 from holding BCAP SET100 or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BCAP SET100 vs. WISE KTAM CSI
Performance |
| Timeline |
| BCAP SET100 |
| WISE KTAM CSI |
BCAP SET100 and WISE KTAM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCAP SET100 and WISE KTAM
The main advantage of trading using opposite BCAP SET100 and WISE KTAM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCAP SET100 position performs unexpectedly, WISE KTAM 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 WISE KTAM will offset losses from the drop in WISE KTAM's long position.| BCAP SET100 vs. ThaiDex SET50 Exchange | BCAP SET100 vs. WISE KTAM CSI | BCAP SET100 vs. ThaiDEX SET High | BCAP SET100 vs. MTrack Energy ETF |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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