Correlation Between Kiatnakin Phatra and Lohakit Metal
Can any of the company-specific risk be diversified away by investing in both Kiatnakin Phatra and Lohakit Metal 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 Lohakit Metal 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 Lohakit Metal Public, you can compare the effects of market volatilities on Kiatnakin Phatra and Lohakit Metal 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 Lohakit Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiatnakin Phatra and Lohakit Metal.
Diversification Opportunities for Kiatnakin Phatra and Lohakit Metal
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kiatnakin and Lohakit is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kiatnakin Phatra Bank and Lohakit Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lohakit Metal 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 Lohakit Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lohakit Metal Public has no effect on the direction of Kiatnakin Phatra i.e., Kiatnakin Phatra and Lohakit Metal go up and down completely randomly.
Pair Corralation between Kiatnakin Phatra and Lohakit Metal
Assuming the 90 days trading horizon Kiatnakin Phatra Bank is expected to under-perform the Lohakit Metal. In addition to that, Kiatnakin Phatra is 2.14 times more volatile than Lohakit Metal Public. It trades about -0.24 of its total potential returns per unit of risk. Lohakit Metal Public is currently generating about 0.0 per unit of volatility. If you would invest 376.00 in Lohakit Metal Public on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Lohakit Metal Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kiatnakin Phatra Bank vs. Lohakit Metal Public
Performance |
| Timeline |
| Kiatnakin Phatra Bank |
| Lohakit Metal Public |
Kiatnakin Phatra and Lohakit Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiatnakin Phatra and Lohakit Metal
The main advantage of trading using opposite Kiatnakin Phatra and Lohakit Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiatnakin Phatra position performs unexpectedly, Lohakit Metal 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 Lohakit Metal will offset losses from the drop in Lohakit Metal's long position.| Kiatnakin Phatra vs. Karmarts Public | Kiatnakin Phatra vs. Kang Yong Electric | Kiatnakin Phatra vs. SCG PACKAGING PCL NVDR | Kiatnakin Phatra vs. CK Power Public |
| Lohakit Metal vs. MCS Steel Public | Lohakit Metal vs. Asia Plus Group | Lohakit Metal vs. Lalin Property Public | Lohakit Metal vs. Lam Soon 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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