Correlation Between Eastern Technical and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Eastern Technical 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 Eastern Technical and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastern Technical Engineering and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Eastern Technical 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 Eastern Technical with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Technical and Kiatnakin Phatra.
Diversification Opportunities for Eastern Technical and Kiatnakin Phatra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastern and Kiatnakin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Technical Engineering 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 Eastern Technical 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 Eastern Technical Engineering 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 Eastern Technical i.e., Eastern Technical and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Eastern Technical and Kiatnakin Phatra
Assuming the 90 days trading horizon Eastern Technical is expected to generate 2.06 times less return on investment than Kiatnakin Phatra. But when comparing it to its historical volatility, Eastern Technical Engineering is 1.42 times less risky than Kiatnakin Phatra. It trades about 0.08 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 | Flat |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Eastern Technical Engineering vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Eastern Technical |
| Kiatnakin Phatra Bank |
Eastern Technical and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Technical and Kiatnakin Phatra
The main advantage of trading using opposite Eastern Technical and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Technical 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.| Eastern Technical vs. G Capital Public | Eastern Technical vs. Fortune Parts Industry | Eastern Technical vs. Hydrotek Public | Eastern Technical vs. Ama Marine Public |
| Kiatnakin Phatra vs. Porn Prom Metal | Kiatnakin Phatra vs. Bumrungrad Hospital Public | Kiatnakin Phatra vs. Mena Transport Public | Kiatnakin Phatra vs. Interlink Communication 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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