Correlation Between Thai Ha and Kingsmen CMTI
Can any of the company-specific risk be diversified away by investing in both Thai Ha and Kingsmen CMTI 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 Thai Ha and Kingsmen CMTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Ha Public and Kingsmen CMTI Public, you can compare the effects of market volatilities on Thai Ha and Kingsmen CMTI 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 Thai Ha with a short position of Kingsmen CMTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Ha and Kingsmen CMTI.
Diversification Opportunities for Thai Ha and Kingsmen CMTI
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thai and Kingsmen is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Thai Ha Public and Kingsmen CMTI Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsmen CMTI Public and Thai Ha 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 Thai Ha Public are associated (or correlated) with Kingsmen CMTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsmen CMTI Public has no effect on the direction of Thai Ha i.e., Thai Ha and Kingsmen CMTI go up and down completely randomly.
Pair Corralation between Thai Ha and Kingsmen CMTI
Assuming the 90 days trading horizon Thai Ha Public is expected to generate 0.7 times more return on investment than Kingsmen CMTI. However, Thai Ha Public is 1.42 times less risky than Kingsmen CMTI. It trades about -0.15 of its potential returns per unit of risk. Kingsmen CMTI Public is currently generating about -0.16 per unit of risk. If you would invest 101.00 in Thai Ha Public on September 4, 2024 and sell it today you would lose (9.00) from holding Thai Ha Public or give up 8.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Ha Public vs. Kingsmen CMTI Public
Performance |
| Timeline |
| Thai Ha Public |
| Kingsmen CMTI Public |
Thai Ha and Kingsmen CMTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Ha and Kingsmen CMTI
The main advantage of trading using opposite Thai Ha and Kingsmen CMTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Ha position performs unexpectedly, Kingsmen CMTI 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 Kingsmen CMTI will offset losses from the drop in Kingsmen CMTI's long position.| Thai Ha vs. Kingsmen CMTI Public | Thai Ha vs. Hydrotek Public | Thai Ha vs. Karmarts Public | Thai Ha vs. KC Metalsheet Public |
| Kingsmen CMTI vs. Cho Thavee Public | Kingsmen CMTI vs. G Capital Public | Kingsmen CMTI vs. Thai Ha Public | Kingsmen CMTI vs. Panjawattana Plastic 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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