Correlation Between KRUNGTHAI CARD and PEPTONIC MEDICAL
Can any of the company-specific risk be diversified away by investing in both KRUNGTHAI CARD and PEPTONIC MEDICAL 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 KRUNGTHAI CARD and PEPTONIC MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KRUNGTHAI CARD FGN and PEPTONIC MEDICAL, you can compare the effects of market volatilities on KRUNGTHAI CARD and PEPTONIC MEDICAL 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 KRUNGTHAI CARD with a short position of PEPTONIC MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of KRUNGTHAI CARD and PEPTONIC MEDICAL.
Diversification Opportunities for KRUNGTHAI CARD and PEPTONIC MEDICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KRUNGTHAI and PEPTONIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KRUNGTHAI CARD FGN and PEPTONIC MEDICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEPTONIC MEDICAL and KRUNGTHAI CARD 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 KRUNGTHAI CARD FGN are associated (or correlated) with PEPTONIC MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEPTONIC MEDICAL has no effect on the direction of KRUNGTHAI CARD i.e., KRUNGTHAI CARD and PEPTONIC MEDICAL go up and down completely randomly.
Pair Corralation between KRUNGTHAI CARD and PEPTONIC MEDICAL
Assuming the 90 days trading horizon KRUNGTHAI CARD FGN is expected to under-perform the PEPTONIC MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, KRUNGTHAI CARD FGN is 33.24 times less risky than PEPTONIC MEDICAL. The stock trades about 0.0 of its potential returns per unit of risk. The PEPTONIC MEDICAL is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.46 in PEPTONIC MEDICAL on October 28, 2024 and sell it today you would lose (0.44) from holding PEPTONIC MEDICAL or give up 95.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KRUNGTHAI CARD FGN vs. PEPTONIC MEDICAL
Performance |
| Timeline |
| KRUNGTHAI CARD FGN |
| PEPTONIC MEDICAL |
KRUNGTHAI CARD and PEPTONIC MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KRUNGTHAI CARD and PEPTONIC MEDICAL
The main advantage of trading using opposite KRUNGTHAI CARD and PEPTONIC MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KRUNGTHAI CARD position performs unexpectedly, PEPTONIC MEDICAL 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 PEPTONIC MEDICAL will offset losses from the drop in PEPTONIC MEDICAL's long position.| KRUNGTHAI CARD vs. VULCAN MATERIALS | KRUNGTHAI CARD vs. Martin Marietta Materials | KRUNGTHAI CARD vs. AEGEAN AIRLINES | KRUNGTHAI CARD vs. The Yokohama Rubber |
| PEPTONIC MEDICAL vs. Ares Management Corp | PEPTONIC MEDICAL vs. Coor Service Management | PEPTONIC MEDICAL vs. H2O Retailing | PEPTONIC MEDICAL vs. SALESFORCE INC CDR |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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