Correlation Between Pylon Public and Krungthai Card
Can any of the company-specific risk be diversified away by investing in both Pylon Public 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 Pylon Public and Krungthai Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pylon Public and Krungthai Card Public, you can compare the effects of market volatilities on Pylon Public 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 Pylon Public with a short position of Krungthai Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pylon Public and Krungthai Card.
Diversification Opportunities for Pylon Public and Krungthai Card
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pylon and Krungthai is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Pylon 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 Pylon Public 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 Pylon 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 Pylon Public i.e., Pylon Public and Krungthai Card go up and down completely randomly.
Pair Corralation between Pylon Public and Krungthai Card
Assuming the 90 days trading horizon Pylon Public is expected to under-perform the Krungthai Card. But the stock apears to be less risky and, when comparing its historical volatility, Pylon Public is 91.9 times less risky than Krungthai Card. The stock trades about -0.21 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 |
Pylon Public vs. Krungthai Card Public
Performance |
Timeline |
Pylon Public |
Krungthai Card Public |
Pylon Public and Krungthai Card Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pylon Public and Krungthai Card
The main advantage of trading using opposite Pylon Public and Krungthai Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pylon Public 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.Pylon Public vs. Land and Houses | Pylon Public vs. CH Karnchang Public | Pylon Public vs. Krung Thai Bank | Pylon Public vs. Bangkok Bank Public |
Krungthai Card vs. Amanah Leasing Public | Krungthai Card vs. Infraset Public | Krungthai Card vs. JMT Network Services |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |