Correlation Between KTBST Mixed and Phatra Leasing

Can any of the company-specific risk be diversified away by investing in both KTBST Mixed and Phatra Leasing 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 Phatra Leasing 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 Phatra Leasing Public, you can compare the effects of market volatilities on KTBST Mixed and Phatra Leasing 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 Phatra Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTBST Mixed and Phatra Leasing.

Diversification Opportunities for KTBST Mixed and Phatra Leasing

-0.07

Correlation Coefficient

KTBST Mixed  Phatra Leasing

Good diversification

The 3 months correlation between KTBST and Phatra is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding KTBST Mixed Leasehold and Phatra Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phatra Leasing Public 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 Phatra Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phatra Leasing Public has no effect on the direction of KTBST Mixed i.e., KTBST Mixed and Phatra Leasing go up and down completely randomly.

Pair Corralation between KTBST Mixed and Phatra Leasing

Assuming the 90 days trading horizon KTBST Mixed Leasehold is expected to generate 1.0 times more return on investment than Phatra Leasing. However, KTBST Mixed is 1.0 times more volatile than Phatra Leasing Public. It trades about 0.0 of its potential returns per unit of risk. Phatra Leasing Public is currently generating about -0.19 per unit of risk. If you would invest  638.00  in KTBST Mixed Leasehold on September 16, 2024 and sell it today you would lose (3.00) from holding KTBST Mixed Leasehold or give up 0.47% of portfolio value over 90 days.

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

KTBST Mixed Leasehold  vs.  Phatra Leasing Public

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.

Phatra Leasing Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Phatra Leasing Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with KTBST Mixed and Phatra Leasing

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

The idea behind KTBST Mixed Leasehold and Phatra Leasing Public 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.