Correlation Between Karmarts Public and Srinanaporn Marketing

Can any of the company-specific risk be diversified away by investing in both Karmarts Public and Srinanaporn Marketing 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 Karmarts Public and Srinanaporn Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Karmarts Public and Srinanaporn Marketing

-0.16

Correlation Coefficient

Karmarts Public  Srinanaporn Marketing

Good diversification

The 3 months correlation between Karmarts and Srinanaporn is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Karmarts Public and Srinanaporn Marketing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srinanaporn Marketing and Karmarts 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 Karmarts Public are associated (or correlated) with Srinanaporn Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srinanaporn Marketing has no effect on the direction of Karmarts Public i.e., Karmarts Public and Srinanaporn Marketing go up and down completely randomly.

Pair Corralation between Karmarts Public and Srinanaporn Marketing

Assuming the 90 days trading horizon Karmarts Public is expected to under-perform the Srinanaporn Marketing. In addition to that, Karmarts Public is 2.06 times more volatile than Srinanaporn Marketing Public. It trades about -0.11 of its total potential returns per unit of risk. Srinanaporn Marketing Public is currently generating about 0.04 per unit of volatility. If you would invest  1,190  in Srinanaporn Marketing Public on December 2, 2024 and sell it today you would earn a total of  40.00  from holding Srinanaporn Marketing Public or generate 3.36% return on investment over 90 days.

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

Karmarts Public  vs.  Srinanaporn Marketing Public

Karmarts Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Karmarts 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 primary indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Srinanaporn Marketing

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Srinanaporn Marketing Public are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Srinanaporn Marketing is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Karmarts Public and Srinanaporn Marketing

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

The idea behind Karmarts Public and Srinanaporn Marketing 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..