Correlation Between Krung Thai and Kiattana Transport
Can any of the company-specific risk be diversified away by investing in both Krung Thai and Kiattana Transport 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 Kiattana Transport 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 Kiattana Transport Public, you can compare the effects of market volatilities on Krung Thai and Kiattana Transport 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 Kiattana Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krung Thai and Kiattana Transport.
Diversification Opportunities for Krung Thai and Kiattana Transport
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Krung and Kiattana is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Krung Thai Bank and Kiattana Transport Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiattana Transport 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 Kiattana Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiattana Transport Public has no effect on the direction of Krung Thai i.e., Krung Thai and Kiattana Transport go up and down completely randomly.
Pair Corralation between Krung Thai and Kiattana Transport
Assuming the 90 days trading horizon Krung Thai Bank is expected to generate 0.42 times more return on investment than Kiattana Transport. However, Krung Thai Bank is 2.37 times less risky than Kiattana Transport. It trades about 0.24 of its potential returns per unit of risk. Kiattana Transport Public is currently generating about -0.15 per unit of risk. If you would invest 2,090 in Krung Thai Bank on October 23, 2024 and sell it today you would earn a total of 90.00 from holding Krung Thai Bank or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Krung Thai Bank vs. Kiattana Transport Public
Performance |
| Timeline |
| Krung Thai Bank |
| Kiattana Transport Public |
Krung Thai and Kiattana Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krung Thai and Kiattana Transport
The main advantage of trading using opposite Krung Thai and Kiattana Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krung Thai position performs unexpectedly, Kiattana Transport 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 Kiattana Transport will offset losses from the drop in Kiattana Transport's long position.| Krung Thai vs. Bangkok Bank Public | Krung Thai vs. SCB X Public | Krung Thai vs. Kasikornbank Public | Krung Thai vs. PTT Public |
| Kiattana Transport vs. Namyong Terminal PCL | Kiattana Transport vs. Hwa Fong Rubber | Kiattana Transport vs. Karmarts Public | Kiattana Transport vs. Jay Mart Public |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |