Correlation Between Erawan and Kulthorn Kirby
Can any of the company-specific risk be diversified away by investing in both Erawan and Kulthorn Kirby 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 Erawan and Kulthorn Kirby into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Erawan Group and Kulthorn Kirby Public, you can compare the effects of market volatilities on Erawan and Kulthorn Kirby 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 Erawan with a short position of Kulthorn Kirby. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erawan and Kulthorn Kirby.
Diversification Opportunities for Erawan and Kulthorn Kirby
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Erawan and Kulthorn is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding The Erawan Group and Kulthorn Kirby Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kulthorn Kirby Public and Erawan 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 The Erawan Group are associated (or correlated) with Kulthorn Kirby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kulthorn Kirby Public has no effect on the direction of Erawan i.e., Erawan and Kulthorn Kirby go up and down completely randomly.
Pair Corralation between Erawan and Kulthorn Kirby
If you would invest 392.00 in The Erawan Group on August 25, 2024 and sell it today you would earn a total of 20.00 from holding The Erawan Group or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
The Erawan Group vs. Kulthorn Kirby Public
Performance |
| Timeline |
| Erawan Group |
| Kulthorn Kirby Public |
Erawan and Kulthorn Kirby Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erawan and Kulthorn Kirby
The main advantage of trading using opposite Erawan and Kulthorn Kirby positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erawan position performs unexpectedly, Kulthorn Kirby 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 Kulthorn Kirby will offset losses from the drop in Kulthorn Kirby's long position.| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL Public |
| Kulthorn Kirby vs. KGI Securities Public | Kulthorn Kirby vs. Kang Yong Electric | Kulthorn Kirby vs. Fine Metal Technologies | Kulthorn Kirby vs. Jasmine International 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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