Correlation Between Techno Medical and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Techno Medical 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 Techno Medical and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techno Medical Public and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Techno Medical 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 Techno Medical with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techno Medical and Kiatnakin Phatra.
Diversification Opportunities for Techno Medical and Kiatnakin Phatra
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Techno and Kiatnakin is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Techno Medical 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 Techno Medical 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 Techno Medical 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 Techno Medical i.e., Techno Medical and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Techno Medical and Kiatnakin Phatra
Assuming the 90 days horizon Techno Medical Public is expected to generate 0.38 times more return on investment than Kiatnakin Phatra. However, Techno Medical Public is 2.62 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 -0.22 per unit of risk. If you would invest 123.00 in Techno Medical Public on September 12, 2024 and sell it today you would lose (9.00) from holding Techno Medical Public or give up 7.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techno Medical Public vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Techno Medical Public |
| Kiatnakin Phatra Bank |
Techno Medical and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techno Medical and Kiatnakin Phatra
The main advantage of trading using opposite Techno Medical and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techno Medical 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.| Techno Medical vs. Tata Steel Public | Techno Medical vs. TTCL Public | Techno Medical vs. Thaifoods Group Public | Techno Medical vs. TMT Steel Public |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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