Correlation Between KTAM Gold and ThaiDEX SET
Can any of the company-specific risk be diversified away by investing in both KTAM Gold and ThaiDEX SET 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 KTAM Gold and ThaiDEX SET into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KTAM Gold ETF and ThaiDEX SET High, you can compare the effects of market volatilities on KTAM Gold and ThaiDEX SET 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 KTAM Gold with a short position of ThaiDEX SET. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTAM Gold and ThaiDEX SET.
Diversification Opportunities for KTAM Gold and ThaiDEX SET
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KTAM and ThaiDEX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KTAM Gold ETF and ThaiDEX SET High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ThaiDEX SET High and KTAM Gold 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 KTAM Gold ETF are associated (or correlated) with ThaiDEX SET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ThaiDEX SET High has no effect on the direction of KTAM Gold i.e., KTAM Gold and ThaiDEX SET go up and down completely randomly.
Pair Corralation between KTAM Gold and ThaiDEX SET
Assuming the 90 days trading horizon KTAM Gold ETF is expected to generate 1.43 times more return on investment than ThaiDEX SET. However, KTAM Gold is 1.43 times more volatile than ThaiDEX SET High. It trades about -0.05 of its potential returns per unit of risk. ThaiDEX SET High is currently generating about -0.1 per unit of risk. If you would invest 368.00 in KTAM Gold ETF on August 29, 2024 and sell it today you would lose (5.00) from holding KTAM Gold ETF or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KTAM Gold ETF vs. ThaiDEX SET High
Performance |
| Timeline |
| KTAM Gold ETF |
| ThaiDEX SET High |
KTAM Gold and ThaiDEX SET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTAM Gold and ThaiDEX SET
The main advantage of trading using opposite KTAM Gold and ThaiDEX SET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTAM Gold position performs unexpectedly, ThaiDEX SET 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 ThaiDEX SET will offset losses from the drop in ThaiDEX SET's long position.| KTAM Gold vs. ThaiDex SET50 Exchange | KTAM Gold vs. WISE KTAM CSI | KTAM Gold vs. ThaiDEX SET High | KTAM Gold vs. MTrack Energy ETF |
| ThaiDEX SET vs. United Hero ETF | ThaiDEX SET vs. BCAP SET100 | ThaiDEX SET vs. WISE KTAM CSI | ThaiDEX SET vs. KTAM Gold ETF |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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