Correlation Between WISE KTAM and BCAP MSCI
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By analyzing existing cross correlation between WISE KTAM CSI and BCAP MSCI Thailand, you can compare the effects of market volatilities on WISE KTAM and BCAP MSCI 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 BCAP MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of WISE KTAM and BCAP MSCI.
Diversification Opportunities for WISE KTAM and BCAP MSCI
Very weak diversification
The 3 months correlation between WISE and BCAP is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding WISE KTAM CSI and BCAP MSCI Thailand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCAP MSCI 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 BCAP MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCAP MSCI Thailand has no effect on the direction of WISE KTAM i.e., WISE KTAM and BCAP MSCI go up and down completely randomly.
Pair Corralation between WISE KTAM and BCAP MSCI
Assuming the 90 days trading horizon WISE KTAM CSI is expected to generate 2.67 times more return on investment than BCAP MSCI. However, WISE KTAM is 2.67 times more volatile than BCAP MSCI Thailand. It trades about -0.02 of its potential returns per unit of risk. BCAP MSCI Thailand is currently generating about -0.23 per unit of risk. If you would invest 612.00 in WISE KTAM CSI on September 3, 2024 and sell it today you would lose (5.00) from holding WISE KTAM CSI or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WISE KTAM CSI vs. BCAP MSCI Thailand
Performance |
| Timeline |
| WISE KTAM CSI |
| BCAP MSCI Thailand |
WISE KTAM and BCAP MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WISE KTAM and BCAP MSCI
The main advantage of trading using opposite WISE KTAM and BCAP MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WISE KTAM position performs unexpectedly, BCAP MSCI 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 BCAP MSCI will offset losses from the drop in BCAP MSCI's long position.| WISE KTAM vs. United Hero ETF | WISE KTAM vs. BCAP SET100 | WISE KTAM vs. KTAM Gold ETF | WISE KTAM vs. ThaiDEX SET High |
| BCAP MSCI vs. ThaiDex SET50 Exchange | BCAP MSCI vs. BCAP SET100 | BCAP MSCI vs. KTAM Gold ETF | BCAP MSCI vs. WISE KTAM CSI |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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