Correlation Between Khonburi Sugar and Khon Kaen
Can any of the company-specific risk be diversified away by investing in both Khonburi Sugar and Khon Kaen 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 Khonburi Sugar and Khon Kaen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khonburi Sugar Public and Khon Kaen Sugar, you can compare the effects of market volatilities on Khonburi Sugar and Khon Kaen 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 Khonburi Sugar with a short position of Khon Kaen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khonburi Sugar and Khon Kaen.
Diversification Opportunities for Khonburi Sugar and Khon Kaen
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Khonburi and Khon is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Khonburi Sugar Public and Khon Kaen Sugar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khon Kaen Sugar and Khonburi Sugar 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 Khonburi Sugar Public are associated (or correlated) with Khon Kaen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khon Kaen Sugar has no effect on the direction of Khonburi Sugar i.e., Khonburi Sugar and Khon Kaen go up and down completely randomly.
Pair Corralation between Khonburi Sugar and Khon Kaen
Assuming the 90 days trading horizon Khonburi Sugar Public is expected to under-perform the Khon Kaen. In addition to that, Khonburi Sugar is 1.18 times more volatile than Khon Kaen Sugar. It trades about -0.1 of its total potential returns per unit of risk. Khon Kaen Sugar is currently generating about -0.1 per unit of volatility. If you would invest 204.00 in Khon Kaen Sugar on August 27, 2024 and sell it today you would lose (7.00) from holding Khon Kaen Sugar or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Khonburi Sugar Public vs. Khon Kaen Sugar
Performance |
| Timeline |
| Khonburi Sugar Public |
| Khon Kaen Sugar |
Khonburi Sugar and Khon Kaen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khonburi Sugar and Khon Kaen
The main advantage of trading using opposite Khonburi Sugar and Khon Kaen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khonburi Sugar position performs unexpectedly, Khon Kaen 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 Khon Kaen will offset losses from the drop in Khon Kaen's long position.| Khonburi Sugar vs. Khon Kaen Sugar | Khonburi Sugar vs. Kaset Thai International | Khonburi Sugar vs. Lam Soon Public | Khonburi Sugar vs. Lee Feed Mill |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |