Correlation Between WISE KTAM and ABF Thailand
Can any of the company-specific risk be diversified away by investing in both WISE KTAM and ABF Thailand 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 WISE KTAM and ABF Thailand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WISE KTAM CSI and The ABF Thailand, you can compare the effects of market volatilities on WISE KTAM and ABF Thailand 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 WISE KTAM with a short position of ABF Thailand. Check out your portfolio center. Please also check ongoing floating volatility patterns of WISE KTAM and ABF Thailand.
Diversification Opportunities for WISE KTAM and ABF Thailand
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between WISE and ABF is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding WISE KTAM CSI and The ABF Thailand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABF Thailand and WISE KTAM 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 WISE KTAM CSI are associated (or correlated) with ABF Thailand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABF Thailand has no effect on the direction of WISE KTAM i.e., WISE KTAM and ABF Thailand go up and down completely randomly.
Pair Corralation between WISE KTAM and ABF Thailand
Assuming the 90 days trading horizon WISE KTAM CSI is expected to under-perform the ABF Thailand. But the etf apears to be less risky and, when comparing its historical volatility, WISE KTAM CSI is 1.2 times less risky than ABF Thailand. The etf trades about -0.03 of its potential returns per unit of risk. The The ABF Thailand is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 124,500 in The ABF Thailand on September 13, 2024 and sell it today you would earn a total of 9,900 from holding The ABF Thailand or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
WISE KTAM CSI vs. The ABF Thailand
Performance |
| Timeline |
| WISE KTAM CSI |
| ABF Thailand |
WISE KTAM and ABF Thailand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WISE KTAM and ABF Thailand
The main advantage of trading using opposite WISE KTAM and ABF Thailand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WISE KTAM position performs unexpectedly, ABF Thailand 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 ABF Thailand will offset losses from the drop in ABF Thailand's long position.| WISE KTAM vs. ThaiDex SET50 Exchange | WISE KTAM vs. BCAP MSCI Thailand | WISE KTAM vs. BCAP SET100 | WISE KTAM vs. KTAM Gold ETF |
| ABF Thailand vs. United Hero ETF | ABF Thailand vs. BCAP SET100 | ABF Thailand vs. WISE KTAM CSI | ABF Thailand vs. KTAM Gold 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance |