Correlation Between Thanachart Capital and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Thanachart Capital 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 Thanachart Capital and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thanachart Capital Public and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Thanachart Capital 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 Thanachart Capital with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanachart Capital and Kiatnakin Phatra.
Diversification Opportunities for Thanachart Capital and Kiatnakin Phatra
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thanachart and Kiatnakin is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Thanachart Capital 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 Thanachart Capital 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 Thanachart Capital 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 Thanachart Capital i.e., Thanachart Capital and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Thanachart Capital and Kiatnakin Phatra
Assuming the 90 days trading horizon Thanachart Capital Public is expected to generate 0.14 times more return on investment than Kiatnakin Phatra. However, Thanachart Capital Public is 7.23 times less risky than Kiatnakin Phatra. It trades about 0.01 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 4,945 in Thanachart Capital Public on September 4, 2024 and sell it today you would earn a total of 5.00 from holding Thanachart Capital Public or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Thanachart Capital Public vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Thanachart Capital Public |
| Kiatnakin Phatra Bank |
Thanachart Capital and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanachart Capital and Kiatnakin Phatra
The main advantage of trading using opposite Thanachart Capital and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanachart Capital 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.| Thanachart Capital vs. Kiatnakin Phatra Bank | Thanachart Capital vs. Supalai Public | Thanachart Capital vs. Thai Oil Public |
| Kiatnakin Phatra vs. Bhiraj Office Leasehold | Kiatnakin Phatra vs. Charan Insurance Public | Kiatnakin Phatra vs. Pato Chemical Industry | Kiatnakin Phatra vs. Tata Steel 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |