Correlation Between Energy Absolute and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Energy Absolute 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 Energy Absolute and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Absolute Public and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Energy Absolute 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 Energy Absolute with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Absolute and Kiatnakin Phatra.
Diversification Opportunities for Energy Absolute and Kiatnakin Phatra
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Energy and Kiatnakin is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Energy Absolute 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 Energy Absolute 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 Energy Absolute 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 Energy Absolute i.e., Energy Absolute and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Energy Absolute and Kiatnakin Phatra
Assuming the 90 days horizon Energy Absolute is expected to generate 1.23 times less return on investment than Kiatnakin Phatra. In addition to that, Energy Absolute is 3.35 times more volatile than Kiatnakin Phatra Bank. It trades about 0.03 of its total potential returns per unit of risk. Kiatnakin Phatra Bank is currently generating about 0.12 per unit of volatility. If you would invest 4,403 in Kiatnakin Phatra Bank on September 2, 2024 and sell it today you would earn a total of 597.00 from holding Kiatnakin Phatra Bank or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energy Absolute Public vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Energy Absolute Public |
| Kiatnakin Phatra Bank |
Energy Absolute and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Absolute and Kiatnakin Phatra
The main advantage of trading using opposite Energy Absolute and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Absolute 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.| Energy Absolute vs. Gulf Energy Development | Energy Absolute vs. Global Power Synergy | Energy Absolute vs. CP ALL Public | Energy Absolute vs. Bangkok Dusit Medical |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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