Correlation Between Ratchthani Leasing and KGI Securities
Can any of the company-specific risk be diversified away by investing in both Ratchthani Leasing and KGI Securities 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 Ratchthani Leasing and KGI Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ratchthani Leasing Public and KGI Securities Public, you can compare the effects of market volatilities on Ratchthani Leasing and KGI Securities 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 Ratchthani Leasing with a short position of KGI Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratchthani Leasing and KGI Securities.
Diversification Opportunities for Ratchthani Leasing and KGI Securities
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ratchthani and KGI is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ratchthani Leasing Public and KGI Securities Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KGI Securities Public and Ratchthani Leasing 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 Ratchthani Leasing Public are associated (or correlated) with KGI Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KGI Securities Public has no effect on the direction of Ratchthani Leasing i.e., Ratchthani Leasing and KGI Securities go up and down completely randomly.
Pair Corralation between Ratchthani Leasing and KGI Securities
Assuming the 90 days trading horizon Ratchthani Leasing Public is expected to generate 111.64 times more return on investment than KGI Securities. However, Ratchthani Leasing is 111.64 times more volatile than KGI Securities Public. It trades about 0.11 of its potential returns per unit of risk. KGI Securities Public is currently generating about 0.02 per unit of risk. If you would invest 195.00 in Ratchthani Leasing Public on September 2, 2024 and sell it today you would lose (24.00) from holding Ratchthani Leasing Public or give up 12.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ratchthani Leasing Public vs. KGI Securities Public
Performance |
| Timeline |
| Ratchthani Leasing Public |
| KGI Securities Public |
Ratchthani Leasing and KGI Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratchthani Leasing and KGI Securities
The main advantage of trading using opposite Ratchthani Leasing and KGI Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratchthani Leasing position performs unexpectedly, KGI Securities 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 KGI Securities will offset losses from the drop in KGI Securities' long position.| Ratchthani Leasing vs. Thanachart Capital Public | Ratchthani Leasing vs. TISCO Financial Group | Ratchthani Leasing vs. Srisawad Power 1979 | Ratchthani Leasing vs. Home Product Center |
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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 Stocks Directory module to find actively traded stocks across global markets.
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