Correlation Between KGI Securities and Trinity Watthana

Can any of the company-specific risk be diversified away by investing in both KGI Securities and Trinity Watthana 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 Trinity Watthana 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 Trinity Watthana Public, you can compare the effects of market volatilities on KGI Securities and Trinity Watthana 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 Trinity Watthana. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and Trinity Watthana.

Diversification Opportunities for KGI Securities and Trinity Watthana

-0.32

Correlation Coefficient

KGI Securities  Trinity Watthana

Very good diversification

The 3 months correlation between KGI and Trinity is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and Trinity Watthana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Watthana Public 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 Trinity Watthana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Watthana Public has no effect on the direction of KGI Securities i.e., KGI Securities and Trinity Watthana go up and down completely randomly.

Pair Corralation between KGI Securities and Trinity Watthana

Assuming the 90 days trading horizon KGI Securities Public is expected to generate 0.29 times more return on investment than Trinity Watthana. However, KGI Securities Public is 3.47 times less risky than Trinity Watthana. It trades about 0.13 of its potential returns per unit of risk. Trinity Watthana Public is currently generating about -0.28 per unit of risk. If you would invest  414.00  in KGI Securities Public on December 21, 2024 and sell it today you would earn a total of  20.00  from holding KGI Securities Public or generate 4.83% return on investment over 90 days.

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

KGI Securities Public  vs.  Trinity Watthana Public

KGI Securities Public

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KGI Securities Public are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward indicators, KGI Securities is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Trinity Watthana Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trinity Watthana Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers 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.

Pair Trading with KGI Securities and Trinity Watthana

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

The idea behind KGI Securities Public and Trinity Watthana 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..