Correlation Between Exotic Food and Kiatnakin Phatra
Can any of the company-specific risk be diversified away by investing in both Exotic Food 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 Exotic Food and Kiatnakin Phatra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exotic Food Public and Kiatnakin Phatra Bank, you can compare the effects of market volatilities on Exotic Food 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 Exotic Food with a short position of Kiatnakin Phatra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exotic Food and Kiatnakin Phatra.
Diversification Opportunities for Exotic Food and Kiatnakin Phatra
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exotic and Kiatnakin is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Exotic Food 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 Exotic Food 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 Exotic Food 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 Exotic Food i.e., Exotic Food and Kiatnakin Phatra go up and down completely randomly.
Pair Corralation between Exotic Food and Kiatnakin Phatra
Assuming the 90 days horizon Exotic Food Public is expected to under-perform the Kiatnakin Phatra. In addition to that, Exotic Food is 1.73 times more volatile than Kiatnakin Phatra Bank. It trades about -0.27 of its total potential returns per unit of risk. Kiatnakin Phatra Bank is currently generating about -0.23 per unit of volatility. If you would invest 5,450 in Kiatnakin Phatra Bank on August 29, 2024 and sell it today you would lose (400.00) from holding Kiatnakin Phatra Bank or give up 7.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exotic Food Public vs. Kiatnakin Phatra Bank
Performance |
| Timeline |
| Exotic Food Public |
| Kiatnakin Phatra Bank |
Exotic Food and Kiatnakin Phatra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exotic Food and Kiatnakin Phatra
The main advantage of trading using opposite Exotic Food and Kiatnakin Phatra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exotic Food 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.| Exotic Food vs. Carabao Group Public | Exotic Food vs. Jay Mart Public | Exotic Food vs. Gulf Energy Development | Exotic Food vs. KCE Electronics 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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