Correlation Between KTAM Gold and ThaiDex SET50
Can any of the company-specific risk be diversified away by investing in both KTAM Gold and ThaiDex SET50 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 SET50 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 SET50 Exchange, you can compare the effects of market volatilities on KTAM Gold and ThaiDex SET50 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 SET50. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTAM Gold and ThaiDex SET50.
Diversification Opportunities for KTAM Gold and ThaiDex SET50
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KTAM and ThaiDex is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding KTAM Gold ETF and ThaiDex SET50 Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ThaiDex SET50 Exchange 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 SET50. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ThaiDex SET50 Exchange has no effect on the direction of KTAM Gold i.e., KTAM Gold and ThaiDex SET50 go up and down completely randomly.
Pair Corralation between KTAM Gold and ThaiDex SET50
Assuming the 90 days trading horizon KTAM Gold is expected to generate 6.72 times less return on investment than ThaiDex SET50. In addition to that, KTAM Gold is 1.44 times more volatile than ThaiDex SET50 Exchange. It trades about 0.0 of its total potential returns per unit of risk. ThaiDex SET50 Exchange is currently generating about 0.05 per unit of volatility. If you would invest 913.00 in ThaiDex SET50 Exchange on August 28, 2024 and sell it today you would earn a total of 6.00 from holding ThaiDex SET50 Exchange or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KTAM Gold ETF vs. ThaiDex SET50 Exchange
Performance |
| Timeline |
| KTAM Gold ETF |
| ThaiDex SET50 Exchange |
KTAM Gold and ThaiDex SET50 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTAM Gold and ThaiDex SET50
The main advantage of trading using opposite KTAM Gold and ThaiDex SET50 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTAM Gold position performs unexpectedly, ThaiDex SET50 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 SET50 will offset losses from the drop in ThaiDex SET50's long position.The idea behind KTAM Gold ETF and ThaiDex SET50 Exchange 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.| ThaiDex SET50 vs. United Hero ETF | ThaiDex SET50 vs. BCAP SET100 | ThaiDex SET50 vs. WISE KTAM CSI | ThaiDex SET50 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |