Correlation Between PRG Public and Krung Thai
Can any of the company-specific risk be diversified away by investing in both PRG Public and Krung Thai 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 PRG Public and Krung Thai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PRG Public and Krung Thai Bank, you can compare the effects of market volatilities on PRG Public and Krung Thai 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 PRG Public with a short position of Krung Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of PRG Public and Krung Thai.
Diversification Opportunities for PRG Public and Krung Thai
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PRG and Krung is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding PRG Public and Krung Thai Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krung Thai Bank and PRG Public 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 PRG Public are associated (or correlated) with Krung Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krung Thai Bank has no effect on the direction of PRG Public i.e., PRG Public and Krung Thai go up and down completely randomly.
Pair Corralation between PRG Public and Krung Thai
Assuming the 90 days trading horizon PRG Public is expected to generate 0.82 times more return on investment than Krung Thai. However, PRG Public is 1.21 times less risky than Krung Thai. It trades about -0.16 of its potential returns per unit of risk. Krung Thai Bank is currently generating about -0.26 per unit of risk. If you would invest 905.00 in PRG Public on August 31, 2024 and sell it today you would lose (20.00) from holding PRG Public or give up 2.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PRG Public vs. Krung Thai Bank
Performance |
| Timeline |
| PRG Public |
| Krung Thai Bank |
PRG Public and Krung Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PRG Public and Krung Thai
The main advantage of trading using opposite PRG Public and Krung Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PRG Public position performs unexpectedly, Krung Thai 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 Krung Thai will offset losses from the drop in Krung Thai's long position.| PRG Public vs. Surapon Foods Public | PRG Public vs. Peoples Garment Public | PRG Public vs. President Bakery Public | PRG Public vs. Sri Trang Agro Industry |
| Krung Thai vs. Bangkok Bank Public | Krung Thai vs. SCB X Public | Krung Thai vs. Kasikornbank Public | Krung Thai vs. PTT 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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