Correlation Between TISCO Financial and KGI Securities
Can any of the company-specific risk be diversified away by investing in both TISCO Financial 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 TISCO Financial and KGI Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TISCO Financial Group and KGI Securities Public, you can compare the effects of market volatilities on TISCO Financial 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 TISCO Financial with a short position of KGI Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of TISCO Financial and KGI Securities.
Diversification Opportunities for TISCO Financial and KGI Securities
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TISCO and KGI is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding TISCO Financial Group 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 TISCO Financial 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 TISCO Financial Group 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 TISCO Financial i.e., TISCO Financial and KGI Securities go up and down completely randomly.
Pair Corralation between TISCO Financial and KGI Securities
Assuming the 90 days trading horizon TISCO Financial Group is expected to under-perform the KGI Securities. In addition to that, TISCO Financial is 1.15 times more volatile than KGI Securities Public. It trades about -0.04 of its total potential returns per unit of risk. KGI Securities Public is currently generating about -0.04 per unit of volatility. If you would invest 420.00 in KGI Securities Public on November 29, 2024 and sell it today you would lose (2.00) from holding KGI Securities Public or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TISCO Financial Group vs. KGI Securities Public
Performance |
| Timeline |
| TISCO Financial Group |
| KGI Securities Public |
TISCO Financial and KGI Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TISCO Financial and KGI Securities
The main advantage of trading using opposite TISCO Financial and KGI Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TISCO Financial 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.| TISCO Financial vs. Kasikornbank Public | TISCO Financial vs. Kiatnakin Phatra Bank | TISCO Financial vs. SCB X Public | TISCO Financial vs. Bangkok Bank Public |
| KGI Securities vs. Bumrungrad Hospital PCL | KGI Securities vs. Globlex Holding Management | KGI Securities vs. MFC Asset Management | KGI Securities vs. AIM Industrial Growth |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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