Correlation Between Kiatnakin Phatra and Autocorp Holding
Can any of the company-specific risk be diversified away by investing in both Kiatnakin Phatra and Autocorp Holding 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 Kiatnakin Phatra and Autocorp Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiatnakin Phatra Bank and Autocorp Holding Public, you can compare the effects of market volatilities on Kiatnakin Phatra and Autocorp Holding 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 Kiatnakin Phatra with a short position of Autocorp Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiatnakin Phatra and Autocorp Holding.
Diversification Opportunities for Kiatnakin Phatra and Autocorp Holding
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kiatnakin and Autocorp is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kiatnakin Phatra Bank and Autocorp Holding Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocorp Holding Public and Kiatnakin Phatra 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 Kiatnakin Phatra Bank are associated (or correlated) with Autocorp Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocorp Holding Public has no effect on the direction of Kiatnakin Phatra i.e., Kiatnakin Phatra and Autocorp Holding go up and down completely randomly.
Pair Corralation between Kiatnakin Phatra and Autocorp Holding
Assuming the 90 days trading horizon Kiatnakin Phatra Bank is expected to generate 1.42 times more return on investment than Autocorp Holding. However, Kiatnakin Phatra is 1.42 times more volatile than Autocorp Holding Public. It trades about 0.11 of its potential returns per unit of risk. Autocorp Holding Public is currently generating about 0.08 per unit of risk. If you would invest 6,300 in Kiatnakin Phatra Bank on September 2, 2024 and sell it today you would lose (1,250) from holding Kiatnakin Phatra Bank or give up 19.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Kiatnakin Phatra Bank vs. Autocorp Holding Public
Performance |
| Timeline |
| Kiatnakin Phatra Bank |
| Autocorp Holding Public |
Kiatnakin Phatra and Autocorp Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiatnakin Phatra and Autocorp Holding
The main advantage of trading using opposite Kiatnakin Phatra and Autocorp Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiatnakin Phatra position performs unexpectedly, Autocorp Holding 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 Autocorp Holding will offset losses from the drop in Autocorp Holding's long position.| Kiatnakin Phatra vs. Porn Prom Metal | Kiatnakin Phatra vs. Bumrungrad Hospital Public | Kiatnakin Phatra vs. Mena Transport Public | Kiatnakin Phatra vs. Interlink Communication Public |
| Autocorp Holding vs. Amanah Leasing Public | Autocorp Holding vs. Asia Fiber Public | Autocorp Holding vs. Ingress Industrial Public | Autocorp Holding vs. Ekarat Engineering 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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