Correlation Between VULCAN MATERIALS and KRUNGTHAI CARD
Can any of the company-specific risk be diversified away by investing in both VULCAN MATERIALS and KRUNGTHAI CARD 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 VULCAN MATERIALS and KRUNGTHAI CARD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VULCAN MATERIALS and KRUNGTHAI CARD FGN, you can compare the effects of market volatilities on VULCAN MATERIALS and KRUNGTHAI CARD 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 VULCAN MATERIALS with a short position of KRUNGTHAI CARD. Check out your portfolio center. Please also check ongoing floating volatility patterns of VULCAN MATERIALS and KRUNGTHAI CARD.
Diversification Opportunities for VULCAN MATERIALS and KRUNGTHAI CARD
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VULCAN and KRUNGTHAI is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding VULCAN MATERIALS and KRUNGTHAI CARD FGN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRUNGTHAI CARD FGN and VULCAN MATERIALS 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 VULCAN MATERIALS are associated (or correlated) with KRUNGTHAI CARD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRUNGTHAI CARD FGN has no effect on the direction of VULCAN MATERIALS i.e., VULCAN MATERIALS and KRUNGTHAI CARD go up and down completely randomly.
Pair Corralation between VULCAN MATERIALS and KRUNGTHAI CARD
Assuming the 90 days trading horizon VULCAN MATERIALS is expected to generate 0.84 times more return on investment than KRUNGTHAI CARD. However, VULCAN MATERIALS is 1.19 times less risky than KRUNGTHAI CARD. It trades about 0.09 of its potential returns per unit of risk. KRUNGTHAI CARD FGN is currently generating about 0.01 per unit of risk. If you would invest 14,808 in VULCAN MATERIALS on October 29, 2024 and sell it today you would earn a total of 11,392 from holding VULCAN MATERIALS or generate 76.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VULCAN MATERIALS vs. KRUNGTHAI CARD FGN
Performance |
| Timeline |
| VULCAN MATERIALS |
| KRUNGTHAI CARD FGN |
VULCAN MATERIALS and KRUNGTHAI CARD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VULCAN MATERIALS and KRUNGTHAI CARD
The main advantage of trading using opposite VULCAN MATERIALS and KRUNGTHAI CARD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VULCAN MATERIALS position performs unexpectedly, KRUNGTHAI CARD 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 KRUNGTHAI CARD will offset losses from the drop in KRUNGTHAI CARD's long position.| VULCAN MATERIALS vs. Firan Technology Group | VULCAN MATERIALS vs. USWE SPORTS AB | VULCAN MATERIALS vs. SPORTING | VULCAN MATERIALS vs. BioNTech SE |
| KRUNGTHAI CARD vs. Westinghouse Air Brake | KRUNGTHAI CARD vs. SCANSOURCE | KRUNGTHAI CARD vs. NORWEGIAN AIR SHUT | KRUNGTHAI CARD vs. GOME Retail Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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