Correlation Between Kiattana Transport and Sena Development
Can any of the company-specific risk be diversified away by investing in both Kiattana Transport and Sena Development 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 Sena Development 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 Sena Development Public, you can compare the effects of market volatilities on Kiattana Transport and Sena Development 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 Sena Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiattana Transport and Sena Development.
Diversification Opportunities for Kiattana Transport and Sena Development
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kiattana and Sena is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Kiattana Transport Public and Sena Development Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sena Development Public 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 Sena Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sena Development Public has no effect on the direction of Kiattana Transport i.e., Kiattana Transport and Sena Development go up and down completely randomly.
Pair Corralation between Kiattana Transport and Sena Development
Assuming the 90 days trading horizon Kiattana Transport Public is expected to generate 1.0 times more return on investment than Sena Development. However, Kiattana Transport is 1.0 times more volatile than Sena Development Public. It trades about 0.04 of its potential returns per unit of risk. Sena Development Public is currently generating about 0.04 per unit of risk. If you would invest 42.00 in Kiattana Transport Public on September 5, 2024 and sell it today you would lose (10.00) from holding Kiattana Transport Public or give up 23.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kiattana Transport Public vs. Sena Development Public
Performance |
| Timeline |
| Kiattana Transport Public |
| Sena Development Public |
Kiattana Transport and Sena Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiattana Transport and Sena Development
The main advantage of trading using opposite Kiattana Transport and Sena Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiattana Transport position performs unexpectedly, Sena Development 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 Sena Development will offset losses from the drop in Sena Development's long position.| Kiattana Transport vs. Mono Next Public | Kiattana Transport vs. Triple i Logistics | Kiattana Transport vs. Dynasty Ceramic Public | Kiattana Transport vs. The Erawan Group |
| Sena Development vs. Siam Steel Service | Sena Development vs. TMT Steel Public | Sena Development vs. NSL Foods Public | Sena Development vs. MCS Steel 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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