Correlation Between Gunkul Engineering and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering 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 Gunkul Engineering and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gunkul Engineering Public and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Gunkul Engineering 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 Gunkul Engineering with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Kiatnakin Phatra.
Diversification Opportunities for Gunkul Engineering and Kiatnakin Phatra
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gunkul and Kiatnakin is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public 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 Gunkul Engineering 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 Gunkul Engineering Public 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 Gunkul Engineering i.e., Gunkul Engineering and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Gunkul Engineering and Kiatnakin Phatra
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to under-perform the Kiatnakin Phatra. In addition to that, Gunkul Engineering is 1.53 times more volatile than Kiatnakin Phatra Bank. It trades about -0.31 of its total potential returns per unit of risk. Kiatnakin Phatra Bank is currently generating about -0.3 per unit of volatility. If you would invest 5,475 in Kiatnakin Phatra Bank on September 2, 2024 and sell it today you would lose (475.00) from holding Kiatnakin Phatra Bank or give up 8.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunkul Engineering Public vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Gunkul Engineering Public |
| Kiatnakin Phatra Bank |
Gunkul Engineering and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and Kiatnakin Phatra
The main advantage of trading using opposite Gunkul Engineering and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering 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.| Gunkul Engineering vs. Gulf Energy Development | Gunkul Engineering vs. Energy Absolute Public | Gunkul Engineering vs. WHA Public | Gunkul Engineering vs. Bangkok Expressway and |
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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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