Correlation Between K W and Thai Coating
Can any of the company-specific risk be diversified away by investing in both K W and Thai Coating 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 K W and Thai Coating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between K W Metal and Thai Coating Industrial, you can compare the effects of market volatilities on K W and Thai Coating 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 K W with a short position of Thai Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of K W and Thai Coating.
Diversification Opportunities for K W and Thai Coating
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between KWM and Thai is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding K W Metal and Thai Coating Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Coating Industrial and K W 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 K W Metal are associated (or correlated) with Thai Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Coating Industrial has no effect on the direction of K W i.e., K W and Thai Coating go up and down completely randomly.
Pair Corralation between K W and Thai Coating
Assuming the 90 days trading horizon K W Metal is expected to generate 0.2 times more return on investment than Thai Coating. However, K W Metal is 4.92 times less risky than Thai Coating. It trades about 0.22 of its potential returns per unit of risk. Thai Coating Industrial is currently generating about 0.04 per unit of risk. If you would invest 121.00 in K W Metal on September 14, 2024 and sell it today you would earn a total of 9.00 from holding K W Metal or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
K W Metal vs. Thai Coating Industrial
Performance |
| Timeline |
| K W Metal |
| Thai Coating Industrial |
K W and Thai Coating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K W and Thai Coating
The main advantage of trading using opposite K W and Thai Coating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K W position performs unexpectedly, Thai Coating 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 Thai Coating will offset losses from the drop in Thai Coating's long position.| K W vs. Masterkool International Public | K W vs. Infraset Public | K W vs. KC Metalsheet Public | K W vs. DOD Biotech Public |
| Thai Coating vs. Thantawan Industry Public | Thai Coating vs. The Erawan Group | Thai Coating vs. Jay Mart Public | Thai Coating vs. Airports of Thailand |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |