Correlation Between Kiatnakin Phatra and MK Restaurant
Can any of the company-specific risk be diversified away by investing in both Kiatnakin Phatra and MK Restaurant 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 MK Restaurant 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 MK Restaurant Group, you can compare the effects of market volatilities on Kiatnakin Phatra and MK Restaurant 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 MK Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiatnakin Phatra and MK Restaurant.
Diversification Opportunities for Kiatnakin Phatra and MK Restaurant
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kiatnakin and MK Restaurant is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Kiatnakin Phatra Bank and MK Restaurant Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MK Restaurant 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 MK Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MK Restaurant Group has no effect on the direction of Kiatnakin Phatra i.e., Kiatnakin Phatra and MK Restaurant go up and down completely randomly.
Pair Corralation between Kiatnakin Phatra and MK Restaurant
Assuming the 90 days trading horizon Kiatnakin Phatra Bank is expected to generate 0.9 times more return on investment than MK Restaurant. However, Kiatnakin Phatra Bank is 1.11 times less risky than MK Restaurant. It trades about -0.3 of its potential returns per unit of risk. MK Restaurant Group is currently generating about -0.28 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kiatnakin Phatra Bank vs. MK Restaurant Group
Performance |
| Timeline |
| Kiatnakin Phatra Bank |
| MK Restaurant Group |
Kiatnakin Phatra and MK Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiatnakin Phatra and MK Restaurant
The main advantage of trading using opposite Kiatnakin Phatra and MK Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiatnakin Phatra position performs unexpectedly, MK Restaurant 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 MK Restaurant will offset losses from the drop in MK Restaurant'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 |
| MK Restaurant vs. Minor International Public | MK Restaurant vs. Home Product Center | MK Restaurant vs. CP ALL Public | MK Restaurant vs. Central Pattana 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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