Correlation Between KTBST Mixed and Bualuang Office

Can any of the company-specific risk be diversified away by investing in both KTBST Mixed and Bualuang Office 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 KTBST Mixed and Bualuang Office into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KTBST Mixed Leasehold and Bualuang Office Leasehold, you can compare the effects of market volatilities on KTBST Mixed and Bualuang Office 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 KTBST Mixed with a short position of Bualuang Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTBST Mixed and Bualuang Office.

Diversification Opportunities for KTBST Mixed and Bualuang Office

0.5

Correlation Coefficient

KTBST Mixed  Bualuang Office

Very weak diversification

The 3 months correlation between KTBST and Bualuang is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding KTBST Mixed Leasehold and Bualuang Office Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bualuang Office Leasehold and KTBST Mixed 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 KTBST Mixed Leasehold are associated (or correlated) with Bualuang Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bualuang Office Leasehold has no effect on the direction of KTBST Mixed i.e., KTBST Mixed and Bualuang Office go up and down completely randomly.

Pair Corralation between KTBST Mixed and Bualuang Office

Assuming the 90 days trading horizon KTBST Mixed Leasehold is expected to generate 0.08 times more return on investment than Bualuang Office. However, KTBST Mixed Leasehold is 12.27 times less risky than Bualuang Office. It trades about 0.01 of its potential returns per unit of risk. Bualuang Office Leasehold is currently generating about -0.12 per unit of risk. If you would invest  638.00  in KTBST Mixed Leasehold on September 14, 2024 and sell it today you would earn a total of  2.00  from holding KTBST Mixed Leasehold or generate 0.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

KTBST Mixed Leasehold  vs.  Bualuang Office Leasehold

KTBST Mixed Leasehold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KTBST Mixed Leasehold has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, KTBST Mixed is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Bualuang Office Leasehold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bualuang Office Leasehold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with KTBST Mixed and Bualuang Office

The main advantage of trading using opposite KTBST Mixed and Bualuang Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTBST Mixed position performs unexpectedly, Bualuang Office 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 Bualuang Office will offset losses from the drop in Bualuang Office's long position.

The idea behind KTBST Mixed Leasehold and Bualuang Office Leasehold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.