Correlation Between Silicon Craft and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Silicon Craft and Kiatnakin Phatra 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 Silicon Craft and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Craft Technology and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Silicon Craft and Kiatnakin Phatra 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 Silicon Craft with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Craft and Kiatnakin Phatra.
Diversification Opportunities for Silicon Craft and Kiatnakin Phatra
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Silicon and Kiatnakin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Craft Technology and Kiatnakin Phatra Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiatnakin Phatra Bank and Silicon Craft 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 Silicon Craft Technology are associated (or correlated) with Kiatnakin Phatra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiatnakin Phatra Bank has no effect on the direction of Silicon Craft i.e., Silicon Craft and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Silicon Craft and Kiatnakin Phatra
Assuming the 90 days trading horizon Silicon Craft Technology is expected to under-perform the Kiatnakin Phatra. But the stock apears to be less risky and, when comparing its historical volatility, Silicon Craft Technology is 46.61 times less risky than Kiatnakin Phatra. The stock trades about -0.04 of its potential returns per unit of risk. The Kiatnakin Phatra Bank is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Kiatnakin Phatra Bank on September 3, 2024 and sell it today you would earn a total of 5,050 from holding Kiatnakin Phatra Bank or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.83% |
| Values | Daily Returns |
Silicon Craft Technology vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Silicon Craft Technology |
| Kiatnakin Phatra Bank |
Silicon Craft and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Craft and Kiatnakin Phatra
The main advantage of trading using opposite Silicon Craft and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Craft position performs unexpectedly, Kiatnakin Phatra 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 Kiatnakin Phatra will offset losses from the drop in Kiatnakin Phatra's long position.| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand Public |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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