Correlation Between Kiatnakin Phatra and ASIA Capital
Can any of the company-specific risk be diversified away by investing in both Kiatnakin Phatra and ASIA Capital 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 ASIA Capital 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 ASIA Capital Group, you can compare the effects of market volatilities on Kiatnakin Phatra and ASIA Capital 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 ASIA Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiatnakin Phatra and ASIA Capital.
Diversification Opportunities for Kiatnakin Phatra and ASIA Capital
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kiatnakin and ASIA is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kiatnakin Phatra Bank and ASIA Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASIA Capital Group 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 ASIA Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASIA Capital Group has no effect on the direction of Kiatnakin Phatra i.e., Kiatnakin Phatra and ASIA Capital go up and down completely randomly.
Pair Corralation between Kiatnakin Phatra and ASIA Capital
Assuming the 90 days trading horizon Kiatnakin Phatra Bank is expected to generate 0.06 times more return on investment than ASIA Capital. However, Kiatnakin Phatra Bank is 16.24 times less risky than ASIA Capital. It trades about -0.3 of its potential returns per unit of risk. ASIA Capital Group is currently generating about -0.22 per unit of risk. If you would invest 5,475 in Kiatnakin Phatra Bank on September 2, 2024 and sell it today you would lose (475.00) from holding Kiatnakin Phatra Bank or give up 8.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kiatnakin Phatra Bank vs. ASIA Capital Group
Performance |
| Timeline |
| Kiatnakin Phatra Bank |
| ASIA Capital Group |
Kiatnakin Phatra and ASIA Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiatnakin Phatra and ASIA Capital
The main advantage of trading using opposite Kiatnakin Phatra and ASIA Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiatnakin Phatra position performs unexpectedly, ASIA Capital 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 ASIA Capital will offset losses from the drop in ASIA Capital's long position.| Kiatnakin Phatra vs. TISCO Financial Group | Kiatnakin Phatra vs. Kasikornbank Public | Kiatnakin Phatra vs. Thanachart Capital Public | Kiatnakin Phatra vs. SCB X Public |
| ASIA Capital vs. East Coast Furnitech | ASIA Capital vs. Filter Vision Public | ASIA Capital vs. Cho Thavee Public | ASIA Capital vs. Akkhie Prakarn 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |