Correlation Between Krung Thai and Thaifoods Group

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Krung Thai and Thaifoods Group 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 Thaifoods Group 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 Thaifoods Group Public, you can compare the effects of market volatilities on Krung Thai and Thaifoods Group 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 Thaifoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krung Thai and Thaifoods Group.

Diversification Opportunities for Krung Thai and Thaifoods Group

KrungThaifoodsDiversified AwayKrungThaifoodsDiversified Away100%
-0.2
  Correlation Coefficient

Good diversification

The 3 months correlation between Krung and Thaifoods is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Krung Thai Bank and Thaifoods Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaifoods Group 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 Thaifoods Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaifoods Group Public has no effect on the direction of Krung Thai i.e., Krung Thai and Thaifoods Group go up and down completely randomly.

Pair Corralation between Krung Thai and Thaifoods Group

If you would invest  2,040  in Krung Thai Bank on November 14, 2024 and sell it today you would earn a total of  290.00  from holding Krung Thai Bank or generate 14.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Krung Thai Bank  vs.  Thaifoods Group Public

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -50510
JavaScript chart by amCharts 3.21.15KTB-R TFG-R
       Timeline  
Krung Thai Bank 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Krung Thai Bank are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Krung Thai sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2020.52121.52222.52323.524
Thaifoods Group Public 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Thaifoods Group Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Thaifoods Group is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb4.14.15

Krung Thai and Thaifoods Group Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.29-3.21-2.14-1.060.01.152.313.464.61 0.050.100.150.20
JavaScript chart by amCharts 3.21.15KTB-R TFG-R
       Returns  

Pair Trading with Krung Thai and Thaifoods Group

The main advantage of trading using opposite Krung Thai and Thaifoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krung Thai position performs unexpectedly, Thaifoods Group 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 Thaifoods Group will offset losses from the drop in Thaifoods Group's long position.
The idea behind Krung Thai Bank and Thaifoods Group Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

Other Complementary Tools

AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Stocks Directory
Find actively traded stocks across global markets
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas