Correlation Between Kiatnakin Phatra and Business Online
Can any of the company-specific risk be diversified away by investing in both Kiatnakin Phatra and Business Online 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 Business Online 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 Business Online PCL, you can compare the effects of market volatilities on Kiatnakin Phatra and Business Online 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 Business Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiatnakin Phatra and Business Online.
Diversification Opportunities for Kiatnakin Phatra and Business Online
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kiatnakin and Business is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kiatnakin Phatra Bank and Business Online PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Business Online PCL 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 Business Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Business Online PCL has no effect on the direction of Kiatnakin Phatra i.e., Kiatnakin Phatra and Business Online go up and down completely randomly.
Pair Corralation between Kiatnakin Phatra and Business Online
Assuming the 90 days trading horizon Kiatnakin Phatra Bank is expected to generate 50.28 times more return on investment than Business Online. However, Kiatnakin Phatra is 50.28 times more volatile than Business Online PCL. It trades about 0.08 of its potential returns per unit of risk. Business Online PCL is currently generating about -0.1 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 Against |
| Strength | Insignificant |
| Accuracy | 98.76% |
| Values | Daily Returns |
Kiatnakin Phatra Bank vs. Business Online PCL
Performance |
| Timeline |
| Kiatnakin Phatra Bank |
| Business Online PCL |
Kiatnakin Phatra and Business Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiatnakin Phatra and Business Online
The main advantage of trading using opposite Kiatnakin Phatra and Business Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiatnakin Phatra position performs unexpectedly, Business Online 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 Business Online will offset losses from the drop in Business Online'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 |
| Business Online vs. Premier Technology Public | Business Online vs. Sea Oil Public | Business Online vs. Thai Mitsuwa Public | Business Online vs. The Erawan Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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