Correlation Between KTAM Gold and BCAP SET100

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Can any of the company-specific risk be diversified away by investing in both KTAM Gold and BCAP SET100 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 BCAP SET100 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 BCAP SET100, you can compare the effects of market volatilities on KTAM Gold and BCAP SET100 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 BCAP SET100. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTAM Gold and BCAP SET100.

Diversification Opportunities for KTAM Gold and BCAP SET100

0.54
  Correlation Coefficient

Very weak diversification

The 3 months correlation between KTAM and BCAP is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding KTAM Gold ETF and BCAP SET100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCAP SET100 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 BCAP SET100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCAP SET100 has no effect on the direction of KTAM Gold i.e., KTAM Gold and BCAP SET100 go up and down completely randomly.

Pair Corralation between KTAM Gold and BCAP SET100

Assuming the 90 days trading horizon KTAM Gold ETF is expected to under-perform the BCAP SET100. In addition to that, KTAM Gold is 1.56 times more volatile than BCAP SET100. It trades about -0.05 of its total potential returns per unit of risk. BCAP SET100 is currently generating about -0.05 per unit of volatility. If you would invest  982.00  in BCAP SET100 on August 29, 2024 and sell it today you would lose (7.00) from holding BCAP SET100 or give up 0.71% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

KTAM Gold ETF  vs.  BCAP SET100

 Performance 
       Timeline  
KTAM Gold ETF 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in KTAM Gold ETF are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, KTAM Gold is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
BCAP SET100 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in BCAP SET100 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, BCAP SET100 may actually be approaching a critical reversion point that can send shares even higher in December 2024.

KTAM Gold and BCAP SET100 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with KTAM Gold and BCAP SET100

The main advantage of trading using opposite KTAM Gold and BCAP SET100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTAM Gold position performs unexpectedly, BCAP SET100 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 BCAP SET100 will offset losses from the drop in BCAP SET100'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
The idea behind KTAM Gold ETF and BCAP SET100 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
BCAP SET100 vs. ThaiDex SET50 Exchange
BCAP SET100 vs. WISE KTAM CSI
BCAP SET100 vs. ThaiDEX SET High
BCAP SET100 vs. MTrack Energy 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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