Correlation Between KGI Securities and Ratchthani Leasing
Can any of the company-specific risk be diversified away by investing in both KGI Securities and Ratchthani 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 Ratchthani 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 Ratchthani Leasing Public, you can compare the effects of market volatilities on KGI Securities and Ratchthani 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 Ratchthani Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and Ratchthani Leasing.
Diversification Opportunities for KGI Securities and Ratchthani Leasing
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KGI and Ratchthani is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and Ratchthani Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratchthani 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 Ratchthani Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratchthani Leasing Public has no effect on the direction of KGI Securities i.e., KGI Securities and Ratchthani Leasing go up and down completely randomly.
Pair Corralation between KGI Securities and Ratchthani Leasing
Assuming the 90 days trading horizon KGI Securities is expected to generate 654.57 times less return on investment than Ratchthani Leasing. But when comparing it to its historical volatility, KGI Securities Public is 111.64 times less risky than Ratchthani Leasing. It trades about 0.02 of its potential returns per unit of risk. Ratchthani Leasing Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 195.00 in Ratchthani Leasing Public on September 2, 2024 and sell it today you would lose (24.00) from holding Ratchthani Leasing Public or give up 12.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KGI Securities Public vs. Ratchthani Leasing Public
Performance |
| Timeline |
| KGI Securities Public |
| Ratchthani Leasing Public |
KGI Securities and Ratchthani Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGI Securities and Ratchthani Leasing
The main advantage of trading using opposite KGI Securities and Ratchthani Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, Ratchthani 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 Ratchthani Leasing will offset losses from the drop in Ratchthani Leasing's long position.| KGI Securities vs. Turnkey Communication Services | KGI Securities vs. BPS TECHNOLOGY PUBLIC | KGI Securities vs. 2S Metal Public | KGI Securities vs. Information and Communication |
| Ratchthani Leasing vs. Thanachart Capital Public | Ratchthani Leasing vs. TISCO Financial Group | Ratchthani Leasing vs. Srisawad Power 1979 | Ratchthani Leasing vs. Home Product Center |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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