Correlation Between Kiatnakin Phatra and Thai Union
Can any of the company-specific risk be diversified away by investing in both Kiatnakin Phatra and Thai Union 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 Union 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 Union Group, you can compare the effects of market volatilities on Kiatnakin Phatra and Thai Union 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 Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiatnakin Phatra and Thai Union.
Diversification Opportunities for Kiatnakin Phatra and Thai Union
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kiatnakin and Thai is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kiatnakin Phatra Bank and Thai Union Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Union 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 Thai Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Union Group has no effect on the direction of Kiatnakin Phatra i.e., Kiatnakin Phatra and Thai Union go up and down completely randomly.
Pair Corralation between Kiatnakin Phatra and Thai Union
Assuming the 90 days trading horizon Kiatnakin Phatra Bank is expected to generate 1.0 times more return on investment than Thai Union. However, Kiatnakin Phatra is 1.0 times more volatile than Thai Union Group. It trades about 0.17 of its potential returns per unit of risk. Thai Union Group is currently generating about -0.1 per unit of risk. If you would invest 5,325 in Kiatnakin Phatra Bank on November 30, 2024 and sell it today you would earn a total of 300.00 from holding Kiatnakin Phatra Bank or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kiatnakin Phatra Bank vs. Thai Union Group
Performance |
| Timeline |
| Kiatnakin Phatra Bank |
| Thai Union Group |
Kiatnakin Phatra and Thai Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiatnakin Phatra and Thai Union
The main advantage of trading using opposite Kiatnakin Phatra and Thai Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiatnakin Phatra position performs unexpectedly, Thai Union 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 Union will offset losses from the drop in Thai Union'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 |
| Thai Union vs. Charoen Pokphand Foods | Thai Union vs. CP ALL Public | Thai Union vs. Minor International Public | Thai Union vs. Advanced Info 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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