Correlation Between Triple I and Kiattana Transport
Can any of the company-specific risk be diversified away by investing in both Triple I and Kiattana Transport 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 Triple I and Kiattana Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triple i Logistics and Kiattana Transport Public, you can compare the effects of market volatilities on Triple I and Kiattana Transport 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 Triple I with a short position of Kiattana Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triple I and Kiattana Transport.
Diversification Opportunities for Triple I and Kiattana Transport
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Triple and Kiattana is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Triple i Logistics and Kiattana Transport Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiattana Transport Public and Triple I 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 Triple i Logistics are associated (or correlated) with Kiattana Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiattana Transport Public has no effect on the direction of Triple I i.e., Triple I and Kiattana Transport go up and down completely randomly.
Pair Corralation between Triple I and Kiattana Transport
Assuming the 90 days trading horizon Triple I is expected to generate 1.06 times less return on investment than Kiattana Transport. But when comparing it to its historical volatility, Triple i Logistics is 1.0 times less risky than Kiattana Transport. It trades about 0.05 of its potential returns per unit of risk. Kiattana Transport Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Kiattana Transport Public on September 4, 2024 and sell it today you would lose (6.00) from holding Kiattana Transport Public or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
Triple i Logistics vs. Kiattana Transport Public
Performance |
| Timeline |
| Triple i Logistics |
| Kiattana Transport Public |
Triple I and Kiattana Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triple I and Kiattana Transport
The main advantage of trading using opposite Triple I and Kiattana Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triple I position performs unexpectedly, Kiattana Transport 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 Kiattana Transport will offset losses from the drop in Kiattana Transport's long position.| Triple I vs. WICE Logistics PCL | Triple I vs. Asia Aviation Public | Triple I vs. Humanica Public | Triple I vs. Jay Mart Public |
| Kiattana Transport vs. Mono Next Public | Kiattana Transport vs. Triple i Logistics | Kiattana Transport vs. Dynasty Ceramic Public | Kiattana Transport vs. The Erawan Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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