Correlation Between Kiatnakin Phatra and Energy Absolute
Can any of the company-specific risk be diversified away by investing in both Kiatnakin Phatra and Energy Absolute 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 Energy Absolute 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 Energy Absolute Public, you can compare the effects of market volatilities on Kiatnakin Phatra and Energy Absolute 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 Energy Absolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiatnakin Phatra and Energy Absolute.
Diversification Opportunities for Kiatnakin Phatra and Energy Absolute
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kiatnakin and Energy is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kiatnakin Phatra Bank and Energy Absolute Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Absolute 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 Energy Absolute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Absolute Public has no effect on the direction of Kiatnakin Phatra i.e., Kiatnakin Phatra and Energy Absolute go up and down completely randomly.
Pair Corralation between Kiatnakin Phatra and Energy Absolute
Assuming the 90 days trading horizon Kiatnakin Phatra Bank is expected to generate 0.31 times more return on investment than Energy Absolute. However, Kiatnakin Phatra Bank is 3.19 times less risky than Energy Absolute. It trades about -0.03 of its potential returns per unit of risk. Energy Absolute Public is currently generating about -0.09 per unit of risk. If you would invest 6,362 in Kiatnakin Phatra Bank on September 2, 2024 and sell it today you would lose (1,362) from holding Kiatnakin Phatra Bank or give up 21.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kiatnakin Phatra Bank vs. Energy Absolute Public
Performance |
| Timeline |
| Kiatnakin Phatra Bank |
| Energy Absolute Public |
Kiatnakin Phatra and Energy Absolute Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiatnakin Phatra and Energy Absolute
The main advantage of trading using opposite Kiatnakin Phatra and Energy Absolute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiatnakin Phatra position performs unexpectedly, Energy Absolute 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 Energy Absolute will offset losses from the drop in Energy Absolute'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 |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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