Correlation Between Stock Exchange and Krungthai Card
Can any of the company-specific risk be diversified away by investing in both Stock Exchange 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 Stock Exchange and Krungthai Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Krungthai Card Public, you can compare the effects of market volatilities on Stock Exchange 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 Stock Exchange with a short position of Krungthai Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Krungthai Card.
Diversification Opportunities for Stock Exchange and Krungthai Card
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Stock and Krungthai is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of 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 Stock Exchange 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 Stock Exchange Of 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 Stock Exchange i.e., Stock Exchange and Krungthai Card go up and down completely randomly.
Pair Corralation between Stock Exchange and Krungthai Card
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the Krungthai Card. In addition to that, Stock Exchange is 3.03 times more volatile than Krungthai Card Public. It trades about -0.1 of its total potential returns per unit of risk. Krungthai Card Public is currently generating about -0.27 per unit of volatility. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Krungthai Card Public
Performance |
| Timeline |
Stock Exchange and Krungthai Card Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Krungthai Card Public
Pair trading matchups for Krungthai Card
Pair Trading with Stock Exchange and Krungthai Card
The main advantage of trading using opposite Stock Exchange and Krungthai Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange 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.| Stock Exchange vs. Turnkey Communication Services | Stock Exchange vs. Information and Communication | Stock Exchange vs. Peerapat Technology Public | Stock Exchange vs. Lohakit Metal 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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