Correlation Between Kiattana Transport and Panjawattana Plastic

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

Diversification Opportunities for Kiattana Transport and Panjawattana Plastic

0.86

Correlation Coefficient

Kiattana Transport  Panjawattana Plastic

Very poor diversification

The 3 months correlation between Kiattana and Panjawattana is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kiattana Transport Public and Panjawattana Plastic Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panjawattana Plastic 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 Panjawattana Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panjawattana Plastic has no effect on the direction of Kiattana Transport i.e., Kiattana Transport and Panjawattana Plastic go up and down completely randomly.

Pair Corralation between Kiattana Transport and Panjawattana Plastic

Assuming the 90 days trading horizon Kiattana Transport Public is expected to under-perform the Panjawattana Plastic. In addition to that, Kiattana Transport is 2.78 times more volatile than Panjawattana Plastic Public. It trades about -0.11 of its total potential returns per unit of risk. Panjawattana Plastic Public is currently generating about 0.05 per unit of volatility. If you would invest  230.00  in Panjawattana Plastic Public on October 11, 2024 and sell it today you would earn a total of  2.00  from holding Panjawattana Plastic Public or generate 0.87% return on investment over 90 days.

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

Kiattana Transport Public  vs.  Panjawattana Plastic Public

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 February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Panjawattana Plastic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Panjawattana Plastic Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Kiattana Transport and Panjawattana Plastic

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

The idea behind Kiattana Transport Public and Panjawattana Plastic 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.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.