Correlation Between Krung Thai and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Krung Thai and Cedar Realty 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 Cedar Realty 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 Cedar Realty Trust, you can compare the effects of market volatilities on Krung Thai and Cedar Realty 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 Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krung Thai and Cedar Realty.
Diversification Opportunities for Krung Thai and Cedar Realty
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Krung and Cedar is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Krung Thai Bank and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust 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 Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Krung Thai i.e., Krung Thai and Cedar Realty go up and down completely randomly.
Pair Corralation between Krung Thai and Cedar Realty
If you would invest 55.00 in Krung Thai Bank on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Krung Thai Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Krung Thai Bank vs. Cedar Realty Trust
Performance |
| Timeline |
| Krung Thai Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cedar Realty Trust |
Krung Thai and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krung Thai and Cedar Realty
The main advantage of trading using opposite Krung Thai and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krung Thai position performs unexpectedly, Cedar Realty 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 Cedar Realty will offset losses from the drop in Cedar Realty's long position.| Krung Thai vs. Cedar Realty Trust | Krung Thai vs. Titan Machinery | Krung Thai vs. SunOpta | Krung Thai vs. Allegiant Travel |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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