Correlation Between Visa and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Visa 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 Visa with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Kiatnakin Phatra.
Diversification Opportunities for Visa and Kiatnakin Phatra
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Visa and Kiatnakin is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A 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 Visa 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 Visa Class A 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 Visa i.e., Visa and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Visa and Kiatnakin Phatra
Taking into account the 90-day investment horizon Visa is expected to generate 42.96 times less return on investment than Kiatnakin Phatra. But when comparing it to its historical volatility, Visa Class A is 63.51 times less risky than Kiatnakin Phatra. It trades about 0.08 of its potential returns per unit of risk. Kiatnakin Phatra Bank is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7,075 in Kiatnakin Phatra Bank on September 2, 2024 and sell it today you would lose (2,025) from holding Kiatnakin Phatra Bank or give up 28.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.77% |
| Values | Daily Returns |
Visa Class A vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Visa Class A |
| Kiatnakin Phatra Bank |
Visa and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Kiatnakin Phatra
The main advantage of trading using opposite Visa and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Kiatnakin Phatra vs. Porn Prom Metal | Kiatnakin Phatra vs. Bumrungrad Hospital Public | Kiatnakin Phatra vs. Mena Transport Public | Kiatnakin Phatra vs. Interlink Communication 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |