Correlation Between Central Plaza and KT Medical
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By analyzing existing cross correlation between Central Plaza Hotel and KT Medical Service, you can compare the effects of market volatilities on Central Plaza and KT Medical 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 Central Plaza with a short position of KT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Plaza and KT Medical.
Diversification Opportunities for Central Plaza and KT Medical
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Central and KTMS is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Central Plaza Hotel and KT Medical Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Medical Service and Central Plaza 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 Central Plaza Hotel are associated (or correlated) with KT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Medical Service has no effect on the direction of Central Plaza i.e., Central Plaza and KT Medical go up and down completely randomly.
Pair Corralation between Central Plaza and KT Medical
Assuming the 90 days trading horizon Central Plaza Hotel is expected to under-perform the KT Medical. In addition to that, Central Plaza is 1.19 times more volatile than KT Medical Service. It trades about -0.24 of its total potential returns per unit of risk. KT Medical Service is currently generating about -0.16 per unit of volatility. If you would invest 242.00 in KT Medical Service on September 13, 2024 and sell it today you would lose (28.00) from holding KT Medical Service or give up 11.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Central Plaza Hotel vs. KT Medical Service
Performance |
| Timeline |
| Central Plaza Hotel |
| KT Medical Service |
Central Plaza and KT Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Plaza and KT Medical
The main advantage of trading using opposite Central Plaza and KT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Plaza position performs unexpectedly, KT Medical 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 KT Medical will offset losses from the drop in KT Medical's long position.| Central Plaza vs. Ally Leasehold Real | Central Plaza vs. Phatra Leasing Public | Central Plaza vs. 2S Metal Public | Central Plaza vs. TMC Industrial Public |
| KT Medical vs. Bangkok Dusit Medical | KT Medical vs. Bumrungrad Hospital Public | KT Medical vs. Bangkok Chain Hospital | KT Medical vs. Rajthanee Hospital 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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