Correlation Between KGI Securities and TISCO Financial
Can any of the company-specific risk be diversified away by investing in both KGI Securities and TISCO Financial 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 TISCO Financial 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 TISCO Financial Group, you can compare the effects of market volatilities on KGI Securities and TISCO Financial 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 TISCO Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and TISCO Financial.
Diversification Opportunities for KGI Securities and TISCO Financial
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KGI and TISCO is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and TISCO Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TISCO Financial Group 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 TISCO Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TISCO Financial Group has no effect on the direction of KGI Securities i.e., KGI Securities and TISCO Financial go up and down completely randomly.
Pair Corralation between KGI Securities and TISCO Financial
Assuming the 90 days trading horizon KGI Securities is expected to generate 2.54 times less return on investment than TISCO Financial. In addition to that, KGI Securities is 1.97 times more volatile than TISCO Financial Group. It trades about 0.02 of its total potential returns per unit of risk. TISCO Financial Group is currently generating about 0.09 per unit of volatility. If you would invest 9,334 in TISCO Financial Group on September 2, 2024 and sell it today you would earn a total of 316.00 from holding TISCO Financial Group or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KGI Securities Public vs. TISCO Financial Group
Performance |
| Timeline |
| KGI Securities Public |
| TISCO Financial Group |
KGI Securities and TISCO Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGI Securities and TISCO Financial
The main advantage of trading using opposite KGI Securities and TISCO Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, TISCO Financial 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 TISCO Financial will offset losses from the drop in TISCO Financial'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 |
| TISCO Financial vs. Kasikornbank Public | TISCO Financial vs. Kiatnakin Phatra Bank | TISCO Financial vs. SCB X Public | TISCO Financial vs. Bangkok Bank 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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