Correlation Between KGI Securities and Allianz Ayudhya
Can any of the company-specific risk be diversified away by investing in both KGI Securities and Allianz Ayudhya 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 KGI Securities and Allianz Ayudhya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KGI Securities Public and Allianz Ayudhya Capital, you can compare the effects of market volatilities on KGI Securities and Allianz Ayudhya 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 KGI Securities with a short position of Allianz Ayudhya. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and Allianz Ayudhya.
Diversification Opportunities for KGI Securities and Allianz Ayudhya
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KGI and Allianz is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and Allianz Ayudhya Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz Ayudhya Capital and KGI Securities 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 KGI Securities Public are associated (or correlated) with Allianz Ayudhya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz Ayudhya Capital has no effect on the direction of KGI Securities i.e., KGI Securities and Allianz Ayudhya go up and down completely randomly.
Pair Corralation between KGI Securities and Allianz Ayudhya
Assuming the 90 days trading horizon KGI Securities is expected to generate 137.17 times less return on investment than Allianz Ayudhya. But when comparing it to its historical volatility, KGI Securities Public is 2.0 times less risky than Allianz Ayudhya. It trades about 0.0 of its potential returns per unit of risk. Allianz Ayudhya Capital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,100 in Allianz Ayudhya Capital on November 19, 2024 and sell it today you would earn a total of 50.00 from holding Allianz Ayudhya Capital or generate 1.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
KGI Securities Public vs. Allianz Ayudhya Capital
Performance |
Timeline |
KGI Securities Public |
Allianz Ayudhya Capital |
KGI Securities and Allianz Ayudhya Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KGI Securities and Allianz Ayudhya
The main advantage of trading using opposite KGI Securities and Allianz Ayudhya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, Allianz Ayudhya 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 Allianz Ayudhya will offset losses from the drop in Allianz Ayudhya's long position.KGI Securities vs. Thai Reinsurance Public | ||
KGI Securities vs. Ratchthani Leasing Public | ||
KGI Securities vs. Bangkok Life Assurance | ||
KGI Securities vs. Thanachart Capital Public |
Allianz Ayudhya vs. Bank of Ayudhya | ||
Allianz Ayudhya vs. Bangkok Aviation Fuel | ||
Allianz Ayudhya vs. AP Public | ||
Allianz Ayudhya vs. BEC World Public |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |