Correlation Between Saha Pathanapibul and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Saha Pathanapibul 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 Saha Pathanapibul and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saha Pathanapibul Public and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Saha Pathanapibul 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 Saha Pathanapibul with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saha Pathanapibul and Kiatnakin Phatra.
Diversification Opportunities for Saha Pathanapibul and Kiatnakin Phatra
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saha and Kiatnakin is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Saha Pathanapibul Public 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 Saha Pathanapibul 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 Saha Pathanapibul Public 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 Saha Pathanapibul i.e., Saha Pathanapibul and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Saha Pathanapibul and Kiatnakin Phatra
Assuming the 90 days trading horizon Saha Pathanapibul Public is expected to generate 0.53 times more return on investment than Kiatnakin Phatra. However, Saha Pathanapibul Public is 1.9 times less risky than Kiatnakin Phatra. It trades about 0.24 of its potential returns per unit of risk. Kiatnakin Phatra Bank is currently generating about -0.23 per unit of risk. If you would invest 5,674 in Saha Pathanapibul Public on August 31, 2024 and sell it today you would earn a total of 226.00 from holding Saha Pathanapibul Public or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saha Pathanapibul Public vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Saha Pathanapibul Public |
| Kiatnakin Phatra Bank |
Saha Pathanapibul and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saha Pathanapibul and Kiatnakin Phatra
The main advantage of trading using opposite Saha Pathanapibul and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saha Pathanapibul 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.| Saha Pathanapibul vs. TRC Construction Public | Saha Pathanapibul vs. Bangkok Expressway and | Saha Pathanapibul vs. Lohakit Metal Public | Saha Pathanapibul vs. Gunkul Engineering Public |
| Kiatnakin Phatra vs. TISCO Financial Group | Kiatnakin Phatra vs. SCB X Public | Kiatnakin Phatra vs. Bangkok Bank 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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