Correlation Between Charan Insurance and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Charan Insurance 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 Charan Insurance and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charan Insurance Public and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Charan Insurance 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 Charan Insurance with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charan Insurance and Kiatnakin Phatra.
Diversification Opportunities for Charan Insurance and Kiatnakin Phatra
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Charan and Kiatnakin is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Charan Insurance Public 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 Charan Insurance 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 Charan Insurance Public 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 Charan Insurance i.e., Charan Insurance and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Charan Insurance and Kiatnakin Phatra
Assuming the 90 days trading horizon Charan Insurance Public is expected to generate 0.16 times more return on investment than Kiatnakin Phatra. However, Charan Insurance Public is 6.43 times less risky than Kiatnakin Phatra. It trades about 0.0 of its potential returns per unit of risk. Kiatnakin Phatra Bank is currently generating about -0.22 per unit of risk. If you would invest 2,200 in Charan Insurance Public on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Charan Insurance Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Charan Insurance Public vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Charan Insurance Public |
| Kiatnakin Phatra Bank |
Charan Insurance and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charan Insurance and Kiatnakin Phatra
The main advantage of trading using opposite Charan Insurance and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charan Insurance 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.| Charan Insurance vs. Global Green Chemicals | Charan Insurance vs. Krung Thai Bank | Charan Insurance vs. Muang Thai Insurance | Charan Insurance vs. Indara Insurance Public |
| Kiatnakin Phatra vs. Communication System Solution | Kiatnakin Phatra vs. Techno Medical Public | Kiatnakin Phatra vs. Vintcom Technology PCL | Kiatnakin Phatra vs. Simat Technologies 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |