Correlation Between Thai Union and Kingsmen CMTI
Can any of the company-specific risk be diversified away by investing in both Thai Union and Kingsmen CMTI 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 Thai Union and Kingsmen CMTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Union Group and Kingsmen CMTI Public, you can compare the effects of market volatilities on Thai Union and Kingsmen CMTI 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 Thai Union with a short position of Kingsmen CMTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Union and Kingsmen CMTI.
Diversification Opportunities for Thai Union and Kingsmen CMTI
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thai and Kingsmen is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Thai Union Group and Kingsmen CMTI Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsmen CMTI Public and Thai Union 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 Thai Union Group are associated (or correlated) with Kingsmen CMTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsmen CMTI Public has no effect on the direction of Thai Union i.e., Thai Union and Kingsmen CMTI go up and down completely randomly.
Pair Corralation between Thai Union and Kingsmen CMTI
Assuming the 90 days trading horizon Thai Union Group is expected to generate 0.25 times more return on investment than Kingsmen CMTI. However, Thai Union Group is 3.97 times less risky than Kingsmen CMTI. It trades about 0.19 of its potential returns per unit of risk. Kingsmen CMTI Public is currently generating about -0.15 per unit of risk. If you would invest 1,301 in Thai Union Group on September 12, 2024 and sell it today you would earn a total of 49.00 from holding Thai Union Group or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Union Group vs. Kingsmen CMTI Public
Performance |
| Timeline |
| Thai Union Group |
| Kingsmen CMTI Public |
Thai Union and Kingsmen CMTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Union and Kingsmen CMTI
The main advantage of trading using opposite Thai Union and Kingsmen CMTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Union position performs unexpectedly, Kingsmen CMTI 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 Kingsmen CMTI will offset losses from the drop in Kingsmen CMTI's long position.| Thai Union vs. Krung Thai Bank | Thai Union vs. Thai Oil Public | Thai Union vs. Charoen Pokphand Foods | Thai Union vs. CP ALL Public |
| Kingsmen CMTI vs. Asphere Innovations Public | Kingsmen CMTI vs. Com7 PCL | Kingsmen CMTI vs. TKS Technologies Public | Kingsmen CMTI vs. Rajthanee Hospital 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |