Correlation Between KGI Securities and Trinity Watthana
Can any of the company-specific risk be diversified away by investing in both KGI Securities and Trinity Watthana 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 Trinity Watthana 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 Trinity Watthana Public, you can compare the effects of market volatilities on KGI Securities and Trinity Watthana 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 Trinity Watthana. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and Trinity Watthana.
Diversification Opportunities for KGI Securities and Trinity Watthana
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between KGI and Trinity is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and Trinity Watthana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Watthana 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 Trinity Watthana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Watthana Public has no effect on the direction of KGI Securities i.e., KGI Securities and Trinity Watthana go up and down completely randomly.
Pair Corralation between KGI Securities and Trinity Watthana
Assuming the 90 days trading horizon KGI Securities Public is expected to generate 0.17 times more return on investment than Trinity Watthana. However, KGI Securities Public is 5.94 times less risky than Trinity Watthana. It trades about -0.15 of its potential returns per unit of risk. Trinity Watthana Public is currently generating about -0.49 per unit of risk. If you would invest 424.00 in KGI Securities Public on November 3, 2024 and sell it today you would lose (6.00) from holding KGI Securities Public or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KGI Securities Public vs. Trinity Watthana Public
Performance |
| Timeline |
| KGI Securities Public |
| Trinity Watthana Public |
KGI Securities and Trinity Watthana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGI Securities and Trinity Watthana
The main advantage of trading using opposite KGI Securities and Trinity Watthana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, Trinity Watthana 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 Trinity Watthana will offset losses from the drop in Trinity Watthana's long position.| KGI Securities vs. Bank of Ayudhya | KGI Securities vs. Thai Industrial | KGI Securities vs. Thai Reinsurance Public | KGI Securities vs. Amata Summit Growth |
| Trinity Watthana vs. Asia Plus Group | Trinity Watthana vs. Thitikorn Public | Trinity Watthana vs. TISCO Financial Group | Trinity Watthana vs. KGI Securities 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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