Correlation Between Krungdhep Sophon and Tata Steel
Can any of the company-specific risk be diversified away by investing in both Krungdhep Sophon and Tata Steel 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 Krungdhep Sophon and Tata Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Krungdhep Sophon Public and Tata Steel Public, you can compare the effects of market volatilities on Krungdhep Sophon and Tata Steel 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 Krungdhep Sophon with a short position of Tata Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krungdhep Sophon and Tata Steel.
Diversification Opportunities for Krungdhep Sophon and Tata Steel
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Krungdhep and Tata is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Krungdhep Sophon Public and Tata Steel Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tata Steel Public and Krungdhep Sophon 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 Krungdhep Sophon Public are associated (or correlated) with Tata Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tata Steel Public has no effect on the direction of Krungdhep Sophon i.e., Krungdhep Sophon and Tata Steel go up and down completely randomly.
Pair Corralation between Krungdhep Sophon and Tata Steel
Assuming the 90 days trading horizon Krungdhep Sophon Public is expected to generate 1.0 times more return on investment than Tata Steel. However, Krungdhep Sophon is 1.0 times more volatile than Tata Steel Public. It trades about 0.04 of its potential returns per unit of risk. Tata Steel Public is currently generating about 0.04 per unit of risk. If you would invest 22,780 in Krungdhep Sophon Public on August 27, 2024 and sell it today you would earn a total of 7,520 from holding Krungdhep Sophon Public or generate 33.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.55% |
| Values | Daily Returns |
Krungdhep Sophon Public vs. Tata Steel Public
Performance |
| Timeline |
| Krungdhep Sophon Public |
| Tata Steel Public |
Krungdhep Sophon and Tata Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krungdhep Sophon and Tata Steel
The main advantage of trading using opposite Krungdhep Sophon and Tata Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krungdhep Sophon position performs unexpectedly, Tata Steel 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 Tata Steel will offset losses from the drop in Tata Steel's long position.| Krungdhep Sophon vs. Tata Steel Public | Krungdhep Sophon vs. Thaifoods Group Public | Krungdhep Sophon vs. TMT Steel Public | Krungdhep Sophon vs. The Erawan Group |
| Tata Steel vs. PTT Public | Tata Steel vs. PTT Exploration and | Tata Steel vs. CP ALL Public | Tata Steel vs. Kasikornbank 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |