Correlation Between Kiatnakin Phatra and Thai Coating
Can any of the company-specific risk be diversified away by investing in both Kiatnakin Phatra and Thai Coating 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 Thai Coating 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 Thai Coating Industrial, you can compare the effects of market volatilities on Kiatnakin Phatra and Thai Coating 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 Thai Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiatnakin Phatra and Thai Coating.
Diversification Opportunities for Kiatnakin Phatra and Thai Coating
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kiatnakin and Thai is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Kiatnakin Phatra Bank and Thai Coating Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Coating Industrial 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 Thai Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Coating Industrial has no effect on the direction of Kiatnakin Phatra i.e., Kiatnakin Phatra and Thai Coating go up and down completely randomly.
Pair Corralation between Kiatnakin Phatra and Thai Coating
Assuming the 90 days trading horizon Kiatnakin Phatra Bank is expected to generate 39.51 times more return on investment than Thai Coating. However, Kiatnakin Phatra is 39.51 times more volatile than Thai Coating Industrial. It trades about 0.17 of its potential returns per unit of risk. Thai Coating Industrial is currently generating about 0.05 per unit of risk. If you would invest 0.00 in Kiatnakin Phatra Bank on September 3, 2024 and sell it today you would earn a total of 5,050 from holding Kiatnakin Phatra Bank or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Kiatnakin Phatra Bank vs. Thai Coating Industrial
Performance |
| Timeline |
| Kiatnakin Phatra Bank |
| Thai Coating Industrial |
Kiatnakin Phatra and Thai Coating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiatnakin Phatra and Thai Coating
The main advantage of trading using opposite Kiatnakin Phatra and Thai Coating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiatnakin Phatra position performs unexpectedly, Thai Coating 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 Thai Coating will offset losses from the drop in Thai Coating'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 |
| Thai Coating vs. PTT Public | Thai Coating vs. PTT Exploration and | Thai Coating vs. The Siam Cement | Thai Coating vs. CP ALL 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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