Correlation Between Krungthai Card and Ngern Tid
Can any of the company-specific risk be diversified away by investing in both Krungthai Card and Ngern Tid 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 Ngern Tid 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 Ngern Tid Lor, you can compare the effects of market volatilities on Krungthai Card and Ngern Tid 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 Ngern Tid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krungthai Card and Ngern Tid.
Diversification Opportunities for Krungthai Card and Ngern Tid
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Krungthai and Ngern is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Krungthai Card PCL and Ngern Tid Lor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ngern Tid Lor 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 Ngern Tid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ngern Tid Lor has no effect on the direction of Krungthai Card i.e., Krungthai Card and Ngern Tid go up and down completely randomly.
Pair Corralation between Krungthai Card and Ngern Tid
Assuming the 90 days trading horizon Krungthai Card PCL is expected to under-perform the Ngern Tid. But the stock apears to be less risky and, when comparing its historical volatility, Krungthai Card PCL is 30.88 times less risky than Ngern Tid. The stock trades about -0.01 of its potential returns per unit of risk. The Ngern Tid Lor is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,402 in Ngern Tid Lor on September 12, 2024 and sell it today you would lose (682.00) from holding Ngern Tid Lor or give up 28.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Krungthai Card PCL vs. Ngern Tid Lor
Performance |
| Timeline |
| Krungthai Card PCL |
| Ngern Tid Lor |
Krungthai Card and Ngern Tid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krungthai Card and Ngern Tid
The main advantage of trading using opposite Krungthai Card and Ngern Tid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krungthai Card position performs unexpectedly, Ngern Tid 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 Ngern Tid will offset losses from the drop in Ngern Tid'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 |
| Ngern Tid vs. Srisawad Power 1979 | Ngern Tid vs. Muangthai Capital Public | Ngern Tid vs. Micro Leasing Public | Ngern Tid vs. Krungthai Card PCL |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| 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 | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |