Correlation Between Krungthai Card and Pioneer
Can any of the company-specific risk be diversified away by investing in both Krungthai Card and Pioneer 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 Pioneer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Krungthai Card PCL and Pioneer Motor Public, you can compare the effects of market volatilities on Krungthai Card and Pioneer 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 Pioneer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krungthai Card and Pioneer.
Diversification Opportunities for Krungthai Card and Pioneer
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Krungthai and Pioneer is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Krungthai Card PCL and Pioneer Motor Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Motor Public 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 PCL are associated (or correlated) with Pioneer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Motor Public has no effect on the direction of Krungthai Card i.e., Krungthai Card and Pioneer go up and down completely randomly.
Pair Corralation between Krungthai Card and Pioneer
If you would invest 0.00 in Krungthai Card PCL on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Krungthai Card PCL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.21% |
| Values | Daily Returns |
Krungthai Card PCL vs. Pioneer Motor Public
Performance |
| Timeline |
| Krungthai Card PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Pioneer Motor Public |
Krungthai Card and Pioneer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krungthai Card and Pioneer
The main advantage of trading using opposite Krungthai Card and Pioneer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krungthai Card position performs unexpectedly, Pioneer 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 Pioneer will offset losses from the drop in Pioneer's long position.| Krungthai Card vs. Krung Thai Bank | Krungthai Card vs. SCB X Public | Krungthai Card vs. Bangkok Bank Public | Krungthai Card vs. PTT Public |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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