Correlation Between United Hero and KTAM Gold
Can any of the company-specific risk be diversified away by investing in both United Hero and KTAM Gold 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 United Hero and KTAM Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Hero ETF and KTAM Gold ETF, you can compare the effects of market volatilities on United Hero and KTAM Gold 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 United Hero with a short position of KTAM Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Hero and KTAM Gold.
Diversification Opportunities for United Hero and KTAM Gold
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between United and KTAM is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding United Hero ETF and KTAM Gold ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTAM Gold ETF and United Hero 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 United Hero ETF are associated (or correlated) with KTAM Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTAM Gold ETF has no effect on the direction of United Hero i.e., United Hero and KTAM Gold go up and down completely randomly.
Pair Corralation between United Hero and KTAM Gold
Assuming the 90 days trading horizon United Hero ETF is expected to generate 285.75 times more return on investment than KTAM Gold. However, United Hero is 285.75 times more volatile than KTAM Gold ETF. It trades about 0.27 of its potential returns per unit of risk. KTAM Gold ETF is currently generating about -0.05 per unit of risk. If you would invest 800.00 in United Hero ETF on August 29, 2024 and sell it today you would earn a total of 15.00 from holding United Hero ETF or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Hero ETF vs. KTAM Gold ETF
Performance |
| Timeline |
| United Hero ETF |
| KTAM Gold ETF |
United Hero and KTAM Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Hero and KTAM Gold
The main advantage of trading using opposite United Hero and KTAM Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Hero position performs unexpectedly, KTAM Gold 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 KTAM Gold will offset losses from the drop in KTAM Gold's long position.| United Hero vs. ThaiDex SET50 Exchange | United Hero vs. BCAP MSCI Thailand | United Hero vs. BCAP SET100 | United Hero vs. KTAM Gold ETF |
| KTAM Gold vs. ThaiDex SET50 Exchange | KTAM Gold vs. WISE KTAM CSI | KTAM Gold vs. ThaiDEX SET High | KTAM Gold vs. MTrack Energy ETF |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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