Correlation Between Halcyon Technology and Krung Thai
Can any of the company-specific risk be diversified away by investing in both Halcyon Technology and Krung Thai 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 Halcyon Technology and Krung Thai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Halcyon Technology Public and Krung Thai Bank, you can compare the effects of market volatilities on Halcyon Technology and Krung Thai 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 Halcyon Technology with a short position of Krung Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halcyon Technology and Krung Thai.
Diversification Opportunities for Halcyon Technology and Krung Thai
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Halcyon and Krung is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Halcyon Technology Public and Krung Thai Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krung Thai Bank and Halcyon Technology 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 Halcyon Technology Public are associated (or correlated) with Krung Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krung Thai Bank has no effect on the direction of Halcyon Technology i.e., Halcyon Technology and Krung Thai go up and down completely randomly.
Pair Corralation between Halcyon Technology and Krung Thai
Assuming the 90 days trading horizon Halcyon Technology Public is expected to under-perform the Krung Thai. In addition to that, Halcyon Technology is 3.52 times more volatile than Krung Thai Bank. It trades about -0.34 of its total potential returns per unit of risk. Krung Thai Bank is currently generating about -0.14 per unit of volatility. If you would invest 2,050 in Krung Thai Bank on September 1, 2024 and sell it today you would lose (50.00) from holding Krung Thai Bank or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halcyon Technology Public vs. Krung Thai Bank
Performance |
| Timeline |
| Halcyon Technology Public |
| Krung Thai Bank |
Halcyon Technology and Krung Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halcyon Technology and Krung Thai
The main advantage of trading using opposite Halcyon Technology and Krung Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halcyon Technology position performs unexpectedly, Krung Thai 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 Krung Thai will offset losses from the drop in Krung Thai's long position.| Halcyon Technology vs. Hwa Fong Rubber | Halcyon Technology vs. Haad Thip Public | Halcyon Technology vs. Ichitan Group Public | Halcyon Technology vs. Hana Microelectronics Public |
| Krung Thai vs. The Siam Commercial | Krung Thai vs. Thai Oil Public | Krung Thai vs. Thai Union Group | Krung Thai vs. Kasikornbank Public |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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