Correlation Between Srisawad Power and Krungthai Card
Can any of the company-specific risk be diversified away by investing in both Srisawad Power and Krungthai Card 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 Srisawad Power and Krungthai Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Srisawad Power 1979 and Krungthai Card Public, you can compare the effects of market volatilities on Srisawad Power and Krungthai Card 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 Srisawad Power with a short position of Krungthai Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srisawad Power and Krungthai Card.
Diversification Opportunities for Srisawad Power and Krungthai Card
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Srisawad and Krungthai is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Srisawad Power 1979 and Krungthai Card Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krungthai Card Public and Srisawad Power 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 Srisawad Power 1979 are associated (or correlated) with Krungthai Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krungthai Card Public has no effect on the direction of Srisawad Power i.e., Srisawad Power and Krungthai Card go up and down completely randomly.
Pair Corralation between Srisawad Power and Krungthai Card
Assuming the 90 days trading horizon Srisawad Power is expected to generate 2.0 times less return on investment than Krungthai Card. But when comparing it to its historical volatility, Srisawad Power 1979 is 1.41 times less risky than Krungthai Card. It trades about 0.08 of its potential returns per unit of risk. Krungthai Card Public is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,688 in Krungthai Card Public on August 30, 2024 and sell it today you would lose (63.00) from holding Krungthai Card Public or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Srisawad Power 1979 vs. Krungthai Card Public
Performance |
| Timeline |
| Srisawad Power 1979 |
| Krungthai Card Public |
Srisawad Power and Krungthai Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srisawad Power and Krungthai Card
The main advantage of trading using opposite Srisawad Power and Krungthai Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srisawad Power position performs unexpectedly, Krungthai Card 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 Krungthai Card will offset losses from the drop in Krungthai Card's long position.| Srisawad Power vs. Muangthai Capital Public | Srisawad Power vs. Carabao Group Public | Srisawad Power vs. TISCO Financial Group | Srisawad Power vs. Minor International Public |
| Krungthai Card vs. Krung Thai Bank | Krungthai Card vs. Bangkok Expressway and | Krungthai Card vs. The Siam Commercial | Krungthai Card vs. Advanced Info Service |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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