Correlation Between KC Metalsheet and Thai Ha
Can any of the company-specific risk be diversified away by investing in both KC Metalsheet and Thai Ha 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 KC Metalsheet and Thai Ha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KC Metalsheet Public and Thai Ha Public, you can compare the effects of market volatilities on KC Metalsheet and Thai Ha 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 KC Metalsheet with a short position of Thai Ha. Check out your portfolio center. Please also check ongoing floating volatility patterns of KC Metalsheet and Thai Ha.
Diversification Opportunities for KC Metalsheet and Thai Ha
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KCM and Thai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding KC Metalsheet Public and Thai Ha Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Ha Public and KC Metalsheet 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 KC Metalsheet Public are associated (or correlated) with Thai Ha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Ha Public has no effect on the direction of KC Metalsheet i.e., KC Metalsheet and Thai Ha go up and down completely randomly.
Pair Corralation between KC Metalsheet and Thai Ha
Assuming the 90 days trading horizon KC Metalsheet Public is expected to under-perform the Thai Ha. In addition to that, KC Metalsheet is 1.81 times more volatile than Thai Ha Public. It trades about -0.2 of its total potential returns per unit of risk. Thai Ha Public is currently generating about -0.3 per unit of volatility. If you would invest 91.00 in Thai Ha Public on November 2, 2024 and sell it today you would lose (13.00) from holding Thai Ha Public or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KC Metalsheet Public vs. Thai Ha Public
Performance |
| Timeline |
| KC Metalsheet Public |
| Thai Ha Public |
KC Metalsheet and Thai Ha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KC Metalsheet and Thai Ha
The main advantage of trading using opposite KC Metalsheet and Thai Ha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KC Metalsheet position performs unexpectedly, Thai Ha 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 Thai Ha will offset losses from the drop in Thai Ha's long position.| KC Metalsheet vs. Kingsmen CMTI Public | KC Metalsheet vs. Hydrotek Public | KC Metalsheet vs. Home Pottery Public | KC Metalsheet vs. The Erawan Group |
| Thai Ha vs. Sappe Public | Thai Ha vs. Osotspa Public | Thai Ha vs. RB Food Supply | Thai Ha vs. Sabuy Technology 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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