Correlation Between Cho Thavee and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Cho Thavee 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 Cho Thavee and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cho Thavee Public and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Cho Thavee 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 Cho Thavee with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cho Thavee and Kiatnakin Phatra.
Diversification Opportunities for Cho Thavee and Kiatnakin Phatra
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cho and Kiatnakin is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cho Thavee 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 Cho Thavee 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 Cho Thavee 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 Cho Thavee i.e., Cho Thavee and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Cho Thavee and Kiatnakin Phatra
Assuming the 90 days trading horizon Cho Thavee Public is expected to generate 31.06 times more return on investment than Kiatnakin Phatra. However, Cho Thavee is 31.06 times more volatile than Kiatnakin Phatra Bank. It trades about 0.03 of its potential returns per unit of risk. Kiatnakin Phatra Bank is currently generating about -0.02 per unit of risk. If you would invest 131.00 in Cho Thavee Public on August 27, 2024 and sell it today you would lose (127.00) from holding Cho Thavee Public or give up 96.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cho Thavee Public vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Cho Thavee Public |
| Kiatnakin Phatra Bank |
Cho Thavee and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cho Thavee and Kiatnakin Phatra
The main advantage of trading using opposite Cho Thavee and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cho Thavee 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.| Cho Thavee vs. Chewathai Public | Cho Thavee vs. Filter Vision Public | Cho Thavee vs. G Capital Public | Cho Thavee vs. Demco Public |
| Kiatnakin Phatra vs. Thai Energy Storage | Kiatnakin Phatra vs. Royal Orchid Hotel | Kiatnakin Phatra vs. Grand Canal Land | Kiatnakin Phatra vs. PRG 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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