Correlation Between Yokohama Rubber and KRUNGTHAI CARD
Can any of the company-specific risk be diversified away by investing in both Yokohama Rubber 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 Yokohama Rubber and KRUNGTHAI CARD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Yokohama Rubber and KRUNGTHAI CARD FGN, you can compare the effects of market volatilities on Yokohama Rubber 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 Yokohama Rubber with a short position of KRUNGTHAI CARD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yokohama Rubber and KRUNGTHAI CARD.
Diversification Opportunities for Yokohama Rubber and KRUNGTHAI CARD
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yokohama and KRUNGTHAI is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding The Yokohama Rubber 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 Yokohama Rubber 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 The Yokohama Rubber 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 Yokohama Rubber i.e., Yokohama Rubber and KRUNGTHAI CARD go up and down completely randomly.
Pair Corralation between Yokohama Rubber and KRUNGTHAI CARD
Assuming the 90 days trading horizon The Yokohama Rubber is expected to generate 1.07 times more return on investment than KRUNGTHAI CARD. However, Yokohama Rubber is 1.07 times more volatile than KRUNGTHAI CARD FGN. It trades about 0.17 of its potential returns per unit of risk. KRUNGTHAI CARD FGN is currently generating about 0.15 per unit of risk. If you would invest 1,860 in The Yokohama Rubber on November 6, 2024 and sell it today you would earn a total of 300.00 from holding The Yokohama Rubber or generate 16.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.33% |
| Values | Daily Returns |
The Yokohama Rubber vs. KRUNGTHAI CARD FGN
Performance |
| Timeline |
| Yokohama Rubber |
| KRUNGTHAI CARD FGN |
Yokohama Rubber and KRUNGTHAI CARD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yokohama Rubber and KRUNGTHAI CARD
The main advantage of trading using opposite Yokohama Rubber and KRUNGTHAI CARD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yokohama Rubber 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.| Yokohama Rubber vs. BRIT AMER TOBACCO | Yokohama Rubber vs. Discover Financial Services | Yokohama Rubber vs. Direct Line Insurance | Yokohama Rubber vs. JAPAN TOBACCO UNSPADR12 |
| KRUNGTHAI CARD vs. JLF INVESTMENT | KRUNGTHAI CARD vs. FRACTAL GAMING GROUP | KRUNGTHAI CARD vs. CDL INVESTMENT | KRUNGTHAI CARD vs. MOVIE GAMES SA |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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