Correlation Between Kiattana Transport and Regional Container
Can any of the company-specific risk be diversified away by investing in both Kiattana Transport and Regional Container 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 Kiattana Transport and Regional Container into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiattana Transport Public and Regional Container Lines, you can compare the effects of market volatilities on Kiattana Transport and Regional Container 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 Kiattana Transport with a short position of Regional Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiattana Transport and Regional Container.
Diversification Opportunities for Kiattana Transport and Regional Container
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kiattana and Regional is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kiattana Transport Public and Regional Container Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional Container Lines and Kiattana Transport 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 Kiattana Transport Public are associated (or correlated) with Regional Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional Container Lines has no effect on the direction of Kiattana Transport i.e., Kiattana Transport and Regional Container go up and down completely randomly.
Pair Corralation between Kiattana Transport and Regional Container
Assuming the 90 days trading horizon Kiattana Transport is expected to generate 2.03 times less return on investment than Regional Container. But when comparing it to its historical volatility, Kiattana Transport Public is 1.41 times less risky than Regional Container. It trades about 0.06 of its potential returns per unit of risk. Regional Container Lines is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,408 in Regional Container Lines on September 14, 2024 and sell it today you would earn a total of 392.00 from holding Regional Container Lines or generate 16.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Kiattana Transport Public vs. Regional Container Lines
Performance |
| Timeline |
| Kiattana Transport Public |
| Regional Container Lines |
Kiattana Transport and Regional Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiattana Transport and Regional Container
The main advantage of trading using opposite Kiattana Transport and Regional Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiattana Transport position performs unexpectedly, Regional Container 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 Regional Container will offset losses from the drop in Regional Container's long position.| Kiattana Transport vs. Namyong Terminal PCL | Kiattana Transport vs. Hwa Fong Rubber | Kiattana Transport vs. Karmarts Public | Kiattana Transport vs. Jay Mart Public |
| Regional Container vs. Bank of Ayudhya | Regional Container vs. The Navakij Insurance | Regional Container vs. Thai Life Insurance | Regional Container vs. Jasmine Telecom Systems |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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