Correlation Between KTAM Gold and United Hero
Can any of the company-specific risk be diversified away by investing in both KTAM Gold and United Hero 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 United Hero 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 United Hero ETF, you can compare the effects of market volatilities on KTAM Gold and United Hero 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 United Hero. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTAM Gold and United Hero.
Diversification Opportunities for KTAM Gold and United Hero
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between KTAM and United is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding KTAM Gold ETF and United Hero ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Hero ETF 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 United Hero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Hero ETF has no effect on the direction of KTAM Gold i.e., KTAM Gold and United Hero go up and down completely randomly.
Pair Corralation between KTAM Gold and United Hero
Assuming the 90 days trading horizon KTAM Gold is expected to generate 6.73 times less return on investment than United Hero. But when comparing it to its historical volatility, KTAM Gold ETF is 2.63 times less risky than United Hero. It trades about 0.04 of its potential returns per unit of risk. United Hero ETF is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 722.00 in United Hero ETF on August 24, 2024 and sell it today you would earn a total of 84.00 from holding United Hero ETF or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KTAM Gold ETF vs. United Hero ETF
Performance |
| Timeline |
| KTAM Gold ETF |
| United Hero ETF |
KTAM Gold and United Hero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTAM Gold and United Hero
The main advantage of trading using opposite KTAM Gold and United Hero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTAM Gold position performs unexpectedly, United Hero 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 United Hero will offset losses from the drop in United Hero's long position.| KTAM Gold vs. ThaiDex SET50 Exchange | KTAM Gold vs. BCAP SET100 | KTAM Gold vs. WISE KTAM CSI | KTAM Gold vs. ThaiDEX SET High |
| United Hero vs. ThaiDex SET50 Exchange | United Hero vs. BCAP MSCI Thailand | United Hero vs. BCAP SET100 | United Hero 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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