Correlation Between Warrix Sport and Kiattana Transport

Can any of the company-specific risk be diversified away by investing in both Warrix Sport and Kiattana Transport 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 Warrix Sport and Kiattana Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Warrix Sport PCL and Kiattana Transport Public, you can compare the effects of market volatilities on Warrix Sport and Kiattana Transport 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 Warrix Sport with a short position of Kiattana Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Warrix Sport and Kiattana Transport.

Diversification Opportunities for Warrix Sport and Kiattana Transport

-0.54

Correlation Coefficient

Warrix Sport  Kiattana Transport

Excellent diversification

The 3 months correlation between Warrix and Kiattana is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Warrix Sport PCL and Kiattana Transport Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiattana Transport Public and Warrix Sport 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 Warrix Sport PCL are associated (or correlated) with Kiattana Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiattana Transport Public has no effect on the direction of Warrix Sport i.e., Warrix Sport and Kiattana Transport go up and down completely randomly.

Pair Corralation between Warrix Sport and Kiattana Transport

Assuming the 90 days trading horizon Warrix Sport PCL is expected to generate 1.11 times more return on investment than Kiattana Transport. However, Warrix Sport is 1.11 times more volatile than Kiattana Transport Public. It trades about 0.0 of its potential returns per unit of risk. Kiattana Transport Public is currently generating about -0.08 per unit of risk. If you would invest  392.00  in Warrix Sport PCL on September 15, 2024 and sell it today you would lose (4.00) from holding Warrix Sport PCL or give up 1.02% of portfolio value over 90 days.

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

Warrix Sport PCL  vs.  Kiattana Transport Public

Warrix Sport PCL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Warrix Sport PCL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Warrix Sport is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Kiattana Transport Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kiattana Transport Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Warrix Sport and Kiattana Transport

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

The idea behind Warrix Sport PCL and Kiattana Transport 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.