Correlation Between Kaset Thai and Minor International
Can any of the company-specific risk be diversified away by investing in both Kaset Thai and Minor International 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 Kaset Thai and Minor International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaset Thai International and Minor International Public, you can compare the effects of market volatilities on Kaset Thai and Minor International 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 Kaset Thai with a short position of Minor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaset Thai and Minor International.
Diversification Opportunities for Kaset Thai and Minor International
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kaset and Minor is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kaset Thai International and Minor International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minor International and Kaset 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 Kaset Thai International are associated (or correlated) with Minor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minor International has no effect on the direction of Kaset Thai i.e., Kaset Thai and Minor International go up and down completely randomly.
Pair Corralation between Kaset Thai and Minor International
Assuming the 90 days trading horizon Kaset Thai International is expected to generate 29.63 times more return on investment than Minor International. However, Kaset Thai is 29.63 times more volatile than Minor International Public. It trades about 0.04 of its potential returns per unit of risk. Minor International Public is currently generating about -0.02 per unit of risk. If you would invest 364.00 in Kaset Thai International on August 31, 2024 and sell it today you would lose (72.00) from holding Kaset Thai International or give up 19.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Kaset Thai International vs. Minor International Public
Performance |
| Timeline |
| Kaset Thai International |
| Minor International |
Kaset Thai and Minor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaset Thai and Minor International
The main advantage of trading using opposite Kaset Thai and Minor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaset Thai position performs unexpectedly, Minor International 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 Minor International will offset losses from the drop in Minor International's long position.| Kaset Thai vs. Khon Kaen Sugar | Kaset Thai vs. Khonburi Sugar Public | Kaset Thai vs. Ichitan Group Public | Kaset Thai vs. MK Restaurant Group |
| Minor International vs. TRC Construction Public | Minor International vs. Bangkok Expressway and | Minor International vs. Lohakit Metal Public | Minor International vs. Gunkul Engineering 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| 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 | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |