Correlation Between Turnkey Communication and Krung Thai
Can any of the company-specific risk be diversified away by investing in both Turnkey Communication and Krung Thai 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 Turnkey Communication and Krung Thai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turnkey Communication Services and Krung Thai Bank, you can compare the effects of market volatilities on Turnkey Communication and Krung Thai 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 Turnkey Communication with a short position of Krung Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turnkey Communication and Krung Thai.
Diversification Opportunities for Turnkey Communication and Krung Thai
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Turnkey and Krung is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Turnkey Communication Services and Krung Thai Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krung Thai Bank and Turnkey Communication 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 Turnkey Communication Services are associated (or correlated) with Krung Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krung Thai Bank has no effect on the direction of Turnkey Communication i.e., Turnkey Communication and Krung Thai go up and down completely randomly.
Pair Corralation between Turnkey Communication and Krung Thai
Assuming the 90 days trading horizon Turnkey Communication is expected to generate 5.99 times less return on investment than Krung Thai. In addition to that, Turnkey Communication is 2.02 times more volatile than Krung Thai Bank. It trades about 0.03 of its total potential returns per unit of risk. Krung Thai Bank is currently generating about 0.34 per unit of volatility. If you would invest 2,100 in Krung Thai Bank on October 31, 2024 and sell it today you would earn a total of 240.00 from holding Krung Thai Bank or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turnkey Communication Services vs. Krung Thai Bank
Performance |
| Timeline |
| Turnkey Communication |
| Krung Thai Bank |
Turnkey Communication and Krung Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turnkey Communication and Krung Thai
The main advantage of trading using opposite Turnkey Communication and Krung Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turnkey Communication position performs unexpectedly, Krung Thai 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 Krung Thai will offset losses from the drop in Krung Thai's long position.| Turnkey Communication vs. Sabuy Technology Public | Turnkey Communication vs. Takuni Group Public | Turnkey Communication vs. Ngern Tid Lor | Turnkey Communication vs. SVI Public |
| Krung Thai vs. The Siam Commercial | Krung Thai vs. Thai Union Group | Krung Thai vs. Kasikornbank Public | Krung Thai vs. The Siam Cement |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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