Correlation Between CK Power and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both CK Power 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 CK Power and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CK Power Public and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on CK Power 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 CK Power with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Power and Kiatnakin Phatra.
Diversification Opportunities for CK Power and Kiatnakin Phatra
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between CKP and Kiatnakin is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding CK Power 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 CK Power 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 CK Power 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 CK Power i.e., CK Power and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between CK Power and Kiatnakin Phatra
Assuming the 90 days trading horizon CK Power Public is expected to under-perform the Kiatnakin Phatra. In addition to that, CK Power is 1.24 times more volatile than Kiatnakin Phatra Bank. It trades about -0.28 of its total potential returns per unit of risk. Kiatnakin Phatra Bank is currently generating about -0.28 per unit of volatility. If you would invest 5,450 in Kiatnakin Phatra Bank on September 1, 2024 and sell it today you would lose (450.00) from holding Kiatnakin Phatra Bank or give up 8.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CK Power Public vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| CK Power Public |
| Kiatnakin Phatra Bank |
CK Power and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK Power and Kiatnakin Phatra
The main advantage of trading using opposite CK Power and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK Power 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.| CK Power vs. Energy Absolute Public | CK Power vs. BCPG Public | CK Power vs. Bangkok Expressway and | CK Power vs. Gulf Energy Development |
| Kiatnakin Phatra vs. TISCO Financial Group | Kiatnakin Phatra vs. Kasikornbank Public | Kiatnakin Phatra vs. Thanachart Capital Public | Kiatnakin Phatra vs. SCB X 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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