Correlation Between Kiatnakin Phatra and Porn Prom
Can any of the company-specific risk be diversified away by investing in both Kiatnakin Phatra and Porn Prom 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 Porn Prom 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 Porn Prom Metal, you can compare the effects of market volatilities on Kiatnakin Phatra and Porn Prom 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 Porn Prom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiatnakin Phatra and Porn Prom.
Diversification Opportunities for Kiatnakin Phatra and Porn Prom
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kiatnakin and Porn is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kiatnakin Phatra Bank and Porn Prom Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porn Prom Metal 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 Porn Prom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porn Prom Metal has no effect on the direction of Kiatnakin Phatra i.e., Kiatnakin Phatra and Porn Prom go up and down completely randomly.
Pair Corralation between Kiatnakin Phatra and Porn Prom
Assuming the 90 days trading horizon Kiatnakin Phatra Bank is expected to generate 23.8 times more return on investment than Porn Prom. However, Kiatnakin Phatra is 23.8 times more volatile than Porn Prom Metal. It trades about 0.08 of its potential returns per unit of risk. Porn Prom Metal is currently generating about 0.0 per unit of risk. If you would invest 6,300 in Kiatnakin Phatra Bank on September 3, 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 | 98.75% |
| Values | Daily Returns |
Kiatnakin Phatra Bank vs. Porn Prom Metal
Performance |
| Timeline |
| Kiatnakin Phatra Bank |
| Porn Prom Metal |
Kiatnakin Phatra and Porn Prom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiatnakin Phatra and Porn Prom
The main advantage of trading using opposite Kiatnakin Phatra and Porn Prom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiatnakin Phatra position performs unexpectedly, Porn Prom 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 Porn Prom will offset losses from the drop in Porn Prom's long position.| Kiatnakin Phatra vs. Thai Coating Industrial | Kiatnakin Phatra vs. Silicon Craft Technology | Kiatnakin Phatra vs. Siam Technic Concrete | Kiatnakin Phatra vs. TMC Industrial Public |
| Porn Prom vs. Super Energy | Porn Prom vs. WHA Public | Porn Prom vs. Siri Prime Office | Porn Prom vs. Ananda Development 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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