Correlation Between Dcon Products and Krungthai Card
Can any of the company-specific risk be diversified away by investing in both Dcon Products 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 Dcon Products and Krungthai Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dcon Products Public and Krungthai Card Public, you can compare the effects of market volatilities on Dcon Products 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 Dcon Products with a short position of Krungthai Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dcon Products and Krungthai Card.
Diversification Opportunities for Dcon Products and Krungthai Card
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dcon and Krungthai is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Dcon Products Public and Krungthai Card Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krungthai Card Public and Dcon Products 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 Dcon Products Public 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 Public has no effect on the direction of Dcon Products i.e., Dcon Products and Krungthai Card go up and down completely randomly.
Pair Corralation between Dcon Products and Krungthai Card
Assuming the 90 days trading horizon Dcon Products Public is expected to under-perform the Krungthai Card. But the stock apears to be less risky and, when comparing its historical volatility, Dcon Products Public is 57.41 times less risky than Krungthai Card. The stock trades about -0.15 of its potential returns per unit of risk. The Krungthai Card Public is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,688 in Krungthai Card Public on September 26, 2024 and sell it today you would earn a total of 137.00 from holding Krungthai Card Public or generate 2.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Dcon Products Public vs. Krungthai Card Public
Performance |
Timeline |
Dcon Products Public |
Krungthai Card Public |
Dcon Products and Krungthai Card Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dcon Products and Krungthai Card
The main advantage of trading using opposite Dcon Products and Krungthai Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dcon Products 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.Dcon Products vs. Dynasty Ceramic Public | Dcon Products vs. Chonburi Concrete Product | Dcon Products vs. General Engineering Public | Dcon Products vs. Eastern Star Real |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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