Correlation Between Krung Thai and Healthlead Public
Can any of the company-specific risk be diversified away by investing in both Krung Thai and Healthlead Public 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 Krung Thai and Healthlead Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Krung Thai Bank and Healthlead Public, you can compare the effects of market volatilities on Krung Thai and Healthlead Public 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 Krung Thai with a short position of Healthlead Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krung Thai and Healthlead Public.
Diversification Opportunities for Krung Thai and Healthlead Public
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Krung and Healthlead is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Krung Thai Bank and Healthlead Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthlead Public and Krung Thai 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 Krung Thai Bank are associated (or correlated) with Healthlead Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthlead Public has no effect on the direction of Krung Thai i.e., Krung Thai and Healthlead Public go up and down completely randomly.
Pair Corralation between Krung Thai and Healthlead Public
Assuming the 90 days trading horizon Krung Thai Bank is expected to generate 0.6 times more return on investment than Healthlead Public. However, Krung Thai Bank is 1.68 times less risky than Healthlead Public. It trades about 0.01 of its potential returns per unit of risk. Healthlead Public is currently generating about -0.06 per unit of risk. If you would invest 1,940 in Krung Thai Bank on August 31, 2024 and sell it today you would earn a total of 60.00 from holding Krung Thai Bank or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Krung Thai Bank vs. Healthlead Public
Performance |
| Timeline |
| Krung Thai Bank |
| Healthlead Public |
Krung Thai and Healthlead Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krung Thai and Healthlead Public
The main advantage of trading using opposite Krung Thai and Healthlead Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krung Thai position performs unexpectedly, Healthlead Public 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 Healthlead Public will offset losses from the drop in Healthlead Public's long position.| Krung Thai vs. The Siam Commercial | Krung Thai vs. Thai Oil Public | Krung Thai vs. Thai Union Group | Krung Thai vs. Kasikornbank Public |
| Healthlead Public vs. Dohome Public | Healthlead Public vs. Humanica Public | Healthlead Public vs. Jay Mart Public | Healthlead Public vs. Siam Global House |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |