Correlation Between KGI Securities and Phatra Leasing
Can any of the company-specific risk be diversified away by investing in both KGI Securities and Phatra Leasing 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 KGI Securities and Phatra Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KGI Securities Public and Phatra Leasing Public, you can compare the effects of market volatilities on KGI Securities and Phatra Leasing 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 KGI Securities with a short position of Phatra Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and Phatra Leasing.
Diversification Opportunities for KGI Securities and Phatra Leasing
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KGI and Phatra is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and Phatra Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phatra Leasing Public and KGI Securities 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 KGI Securities Public are associated (or correlated) with Phatra Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phatra Leasing Public has no effect on the direction of KGI Securities i.e., KGI Securities and Phatra Leasing go up and down completely randomly.
Pair Corralation between KGI Securities and Phatra Leasing
Assuming the 90 days trading horizon KGI Securities is expected to generate 553.88 times less return on investment than Phatra Leasing. But when comparing it to its historical volatility, KGI Securities Public is 56.36 times less risky than Phatra Leasing. It trades about 0.0 of its potential returns per unit of risk. Phatra Leasing Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 226.00 in Phatra Leasing Public on September 12, 2024 and sell it today you would lose (62.00) from holding Phatra Leasing Public or give up 27.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.96% |
| Values | Daily Returns |
KGI Securities Public vs. Phatra Leasing Public
Performance |
| Timeline |
| KGI Securities Public |
| Phatra Leasing Public |
KGI Securities and Phatra Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGI Securities and Phatra Leasing
The main advantage of trading using opposite KGI Securities and Phatra Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, Phatra Leasing 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 Phatra Leasing will offset losses from the drop in Phatra Leasing's long position.| KGI Securities vs. Kiattana Transport Public | KGI Securities vs. Union Plastic Public | KGI Securities vs. Digital Telecommunications Infrastructure | KGI Securities vs. Hwa Fong Rubber |
| Phatra Leasing vs. KGI Securities Public | Phatra Leasing vs. Lalin Property Public | Phatra Leasing vs. Hwa Fong Rubber | Phatra Leasing vs. MCS Steel 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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