Correlation Between Amanah Leasing and Krungthai Card

Can any of the company-specific risk be diversified away by investing in both Amanah Leasing 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 Amanah Leasing and Krungthai Card into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amanah Leasing Public and Krungthai Card Public, you can compare the effects of market volatilities on Amanah Leasing 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 Amanah Leasing with a short position of Krungthai Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanah Leasing and Krungthai Card.

Diversification Opportunities for Amanah Leasing and Krungthai Card

-0.23

Correlation Coefficient

Amanah Leasing  Krungthai Card

Very good diversification

The 3 months correlation between Amanah and Krungthai is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Amanah Leasing 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 Amanah Leasing 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 Amanah Leasing 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 Amanah Leasing i.e., Amanah Leasing and Krungthai Card go up and down completely randomly.

Pair Corralation between Amanah Leasing and Krungthai Card

Assuming the 90 days trading horizon Amanah Leasing Public is expected to under-perform the Krungthai Card. In addition to that, Amanah Leasing is 2.83 times more volatile than Krungthai Card Public. It trades about -0.35 of its total potential returns per unit of risk. Krungthai Card Public is currently generating about 0.24 per unit of volatility. If you would invest  4,755  in Krungthai Card Public on October 12, 2024 and sell it today you would earn a total of  220.00  from holding Krungthai Card Public or generate 4.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Amanah Leasing Public  vs.  Krungthai Card Public

Amanah Leasing Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amanah Leasing Public 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 February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Krungthai Card Public

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Krungthai Card Public are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Krungthai Card sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amanah Leasing and Krungthai Card

The main advantage of trading using opposite Amanah Leasing and Krungthai Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amanah Leasing 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.

The idea behind Amanah Leasing Public and Krungthai Card 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 Commodity Directory module to find actively traded commodities issued by global exchanges.