Correlation Between KTAM Gold and BCAP MSCI
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By analyzing existing cross correlation between KTAM Gold ETF and BCAP MSCI Thailand, you can compare the effects of market volatilities on KTAM Gold and BCAP MSCI 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 KTAM Gold with a short position of BCAP MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTAM Gold and BCAP MSCI.
Diversification Opportunities for KTAM Gold and BCAP MSCI
Pay attention - limited upside
The 3 months correlation between KTAM and BCAP is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding KTAM Gold ETF and BCAP MSCI Thailand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCAP MSCI Thailand and KTAM Gold 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 KTAM Gold ETF are associated (or correlated) with BCAP MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCAP MSCI Thailand has no effect on the direction of KTAM Gold i.e., KTAM Gold and BCAP MSCI go up and down completely randomly.
Pair Corralation between KTAM Gold and BCAP MSCI
Assuming the 90 days trading horizon KTAM Gold ETF is expected to generate 0.82 times more return on investment than BCAP MSCI. However, KTAM Gold ETF is 1.22 times less risky than BCAP MSCI. It trades about 0.17 of its potential returns per unit of risk. BCAP MSCI Thailand is currently generating about -0.18 per unit of risk. If you would invest 342.00 in KTAM Gold ETF on December 10, 2024 and sell it today you would earn a total of 51.00 from holding KTAM Gold ETF or generate 14.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
KTAM Gold ETF vs. BCAP MSCI Thailand
Performance |
Timeline |
KTAM Gold ETF |
BCAP MSCI Thailand |
KTAM Gold and BCAP MSCI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KTAM Gold and BCAP MSCI
The main advantage of trading using opposite KTAM Gold and BCAP MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTAM Gold position performs unexpectedly, BCAP MSCI 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 BCAP MSCI will offset losses from the drop in BCAP MSCI's long position.The idea behind KTAM Gold ETF and BCAP MSCI Thailand 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.BCAP MSCI vs. BCAP SET100 | BCAP MSCI vs. BCAP Mid Small | BCAP MSCI vs. United Hero ETF | BCAP MSCI vs. WISE KTAM CSI |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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