Correlation Between Krung Thai and INET Leasehold
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By analyzing existing cross correlation between Krung Thai Bank and INET Leasehold REIT, you can compare the effects of market volatilities on Krung Thai and INET Leasehold 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 INET Leasehold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krung Thai and INET Leasehold.
Diversification Opportunities for Krung Thai and INET Leasehold
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Krung and INET is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Krung Thai Bank and INET Leasehold REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INET Leasehold REIT 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 INET Leasehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INET Leasehold REIT has no effect on the direction of Krung Thai i.e., Krung Thai and INET Leasehold go up and down completely randomly.
Pair Corralation between Krung Thai and INET Leasehold
Assuming the 90 days trading horizon Krung Thai Bank is expected to under-perform the INET Leasehold. But the stock apears to be less risky and, when comparing its historical volatility, Krung Thai Bank is 1.04 times less risky than INET Leasehold. The stock trades about -0.12 of its potential returns per unit of risk. The INET Leasehold REIT is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 850.00 in INET Leasehold REIT on August 25, 2024 and sell it today you would earn a total of 0.00 from holding INET Leasehold REIT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Krung Thai Bank vs. INET Leasehold REIT
Performance |
| Timeline |
| Krung Thai Bank |
| INET Leasehold REIT |
Krung Thai and INET Leasehold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krung Thai and INET Leasehold
The main advantage of trading using opposite Krung Thai and INET Leasehold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krung Thai position performs unexpectedly, INET Leasehold 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 INET Leasehold will offset losses from the drop in INET Leasehold's long position.| Krung Thai vs. Supalai Public | Krung Thai vs. Thai Oil Public | Krung Thai vs. The Erawan Group | Krung Thai vs. Ditto Public |
| INET Leasehold vs. Delta Electronics Public | INET Leasehold vs. Delta Electronics Public | INET Leasehold vs. Airports of Thailand | INET Leasehold vs. Airports of Thailand |
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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