Correlation Between Kiattana Transport and Qualitech Public

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

Diversification Opportunities for Kiattana Transport and Qualitech Public

-0.45

Correlation Coefficient

Kiattana Transport  Qualitech Public

Very good diversification

The 3 months correlation between Kiattana and Qualitech is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kiattana Transport Public and Qualitech Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qualitech Public 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 Qualitech Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qualitech Public has no effect on the direction of Kiattana Transport i.e., Kiattana Transport and Qualitech Public go up and down completely randomly.

Pair Corralation between Kiattana Transport and Qualitech Public

Assuming the 90 days trading horizon Kiattana Transport Public is expected to under-perform the Qualitech Public. But the stock apears to be less risky and, when comparing its historical volatility, Kiattana Transport Public is 1.26 times less risky than Qualitech Public. The stock trades about -0.1 of its potential returns per unit of risk. The Qualitech Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  238.00  in Qualitech Public on October 13, 2024 and sell it today you would earn a total of  28.00  from holding Qualitech Public or generate 11.76% return on investment over 90 days.

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

Kiattana Transport Public  vs.  Qualitech 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.

Qualitech Public

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Qualitech Public are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Qualitech Public disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kiattana Transport and Qualitech Public

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

The idea behind Kiattana Transport Public and Qualitech 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.