Correlation Between Ditto Public and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Ditto Public 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 Ditto Public and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ditto Public and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Ditto Public 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 Ditto Public with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ditto Public and Kiatnakin Phatra.
Diversification Opportunities for Ditto Public and Kiatnakin Phatra
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ditto and Kiatnakin is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ditto 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 Ditto Public 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 Ditto 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 Ditto Public i.e., Ditto Public and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Ditto Public and Kiatnakin Phatra
Assuming the 90 days trading horizon Ditto Public is expected to generate 167.12 times less return on investment than Kiatnakin Phatra. But when comparing it to its historical volatility, Ditto Public is 32.27 times less risky than Kiatnakin Phatra. It trades about 0.02 of its potential returns per unit of risk. Kiatnakin Phatra Bank is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6,300 in Kiatnakin Phatra Bank on September 2, 2024 and sell it today you would lose (1,250) from holding Kiatnakin Phatra Bank or give up 19.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Ditto Public vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Ditto Public |
| Kiatnakin Phatra Bank |
Ditto Public and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ditto Public and Kiatnakin Phatra
The main advantage of trading using opposite Ditto Public and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ditto Public 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.| Ditto Public vs. Dohome Public | Ditto Public vs. Beryl 8 Plus | Ditto Public vs. Forth Public | Ditto Public vs. Delta Electronics Public |
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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 Stocks Directory module to find actively traded stocks across global markets.
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