Correlation Between Kiatnakin Phatra and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Kiatnakin Phatra and Thai Oil 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 Oil 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 Oil Public, you can compare the effects of market volatilities on Kiatnakin Phatra and Thai Oil 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 Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiatnakin Phatra and Thai Oil.
Diversification Opportunities for Kiatnakin Phatra and Thai Oil
-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 Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Oil 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 Thai Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Oil Public has no effect on the direction of Kiatnakin Phatra i.e., Kiatnakin Phatra and Thai Oil go up and down completely randomly.
Pair Corralation between Kiatnakin Phatra and Thai Oil
Assuming the 90 days trading horizon Kiatnakin Phatra Bank is expected to generate 1.01 times more return on investment than Thai Oil. However, Kiatnakin Phatra is 1.01 times more volatile than Thai Oil Public. It trades about 0.11 of its potential returns per unit of risk. Thai Oil Public is currently generating about 0.11 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 | 98.4% |
| Values | Daily Returns |
Kiatnakin Phatra Bank vs. Thai Oil Public
Performance |
| Timeline |
| Kiatnakin Phatra Bank |
| Thai Oil Public |
Kiatnakin Phatra and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiatnakin Phatra and Thai Oil
The main advantage of trading using opposite Kiatnakin Phatra and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiatnakin Phatra position performs unexpectedly, Thai Oil 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 Oil will offset losses from the drop in Thai Oil'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 |
| Thai Oil vs. Star Petroleum Refining | Thai Oil vs. Power Solution Technologies | Thai Oil vs. Kingsmen CMTI Public | Thai Oil vs. Project Planning Service |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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