Correlation Between Kiattana Transport and Bangkok Sheet

Can any of the company-specific risk be diversified away by investing in both Kiattana Transport and Bangkok Sheet 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 Kiattana Transport and Bangkok Sheet into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Kiattana Transport and Bangkok Sheet

-0.5

Correlation Coefficient

Kiattana Transport  Bangkok Sheet

Very good diversification

The 3 months correlation between Kiattana and Bangkok is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kiattana Transport Public and Bangkok Sheet Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Sheet Metal and Kiattana Transport 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 Kiattana Transport Public are associated (or correlated) with Bangkok Sheet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Sheet Metal has no effect on the direction of Kiattana Transport i.e., Kiattana Transport and Bangkok Sheet go up and down completely randomly.

Pair Corralation between Kiattana Transport and Bangkok Sheet

Assuming the 90 days trading horizon Kiattana Transport is expected to generate 1.01 times less return on investment than Bangkok Sheet. In addition to that, Kiattana Transport is 1.0 times more volatile than Bangkok Sheet Metal. It trades about 0.06 of its total potential returns per unit of risk. Bangkok Sheet Metal is currently generating about 0.06 per unit of volatility. If you would invest  289.00  in Bangkok Sheet Metal on September 25, 2024 and sell it today you would earn a total of  23.00  from holding Bangkok Sheet Metal or generate 7.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.58%
Values	Daily Returns

Kiattana Transport Public  vs.  Bangkok Sheet Metal

Kiattana Transport Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kiattana Transport 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 forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Bangkok Sheet Metal

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bangkok Sheet Metal are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental drivers, Bangkok Sheet 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 Kiattana Transport and Bangkok Sheet

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

The idea behind Kiattana Transport Public and Bangkok Sheet Metal 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.