Correlation Between KGI Securities and Thai Vegetable
Can any of the company-specific risk be diversified away by investing in both KGI Securities and Thai Vegetable 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 Thai Vegetable 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 Thai Vegetable Oil, you can compare the effects of market volatilities on KGI Securities and Thai Vegetable 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 Thai Vegetable. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and Thai Vegetable.
Diversification Opportunities for KGI Securities and Thai Vegetable
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KGI and Thai is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and Thai Vegetable Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Vegetable Oil 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 Thai Vegetable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Vegetable Oil has no effect on the direction of KGI Securities i.e., KGI Securities and Thai Vegetable go up and down completely randomly.
Pair Corralation between KGI Securities and Thai Vegetable
Assuming the 90 days trading horizon KGI Securities Public is expected to generate 0.69 times more return on investment than Thai Vegetable. However, KGI Securities Public is 1.45 times less risky than Thai Vegetable. It trades about -0.01 of its potential returns per unit of risk. Thai Vegetable Oil is currently generating about -0.02 per unit of risk. If you would invest 447.00 in KGI Securities Public on August 31, 2024 and sell it today you would lose (27.00) from holding KGI Securities Public or give up 6.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KGI Securities Public vs. Thai Vegetable Oil
Performance |
| Timeline |
| KGI Securities Public |
| Thai Vegetable Oil |
KGI Securities and Thai Vegetable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGI Securities and Thai Vegetable
The main advantage of trading using opposite KGI Securities and Thai Vegetable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, Thai Vegetable 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 Vegetable will offset losses from the drop in Thai Vegetable's long position.| KGI Securities vs. Peerapat Technology Public | KGI Securities vs. 2S Metal Public | KGI Securities vs. Silicon Craft Technology | KGI Securities vs. WHA Industrial Leasehold |
| Thai Vegetable vs. Charoen Pokphand Foods | Thai Vegetable vs. Thai Union Group | Thai Vegetable vs. TISCO Financial Group | Thai Vegetable vs. Thanachart Capital 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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