Correlation Between Kiattana Transport and Regional Container

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

Diversification Opportunities for Kiattana Transport and Regional Container

-0.56

Correlation Coefficient

Kiattana Transport  Regional Container

Excellent diversification

The 3 months correlation between Kiattana and Regional is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kiattana Transport Public and Regional Container Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional Container Lines 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 Regional Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional Container Lines has no effect on the direction of Kiattana Transport i.e., Kiattana Transport and Regional Container go up and down completely randomly.

Pair Corralation between Kiattana Transport and Regional Container

Assuming the 90 days trading horizon Kiattana Transport Public is expected to generate 0.82 times more return on investment than Regional Container. However, Kiattana Transport Public is 1.22 times less risky than Regional Container. It trades about -0.08 of its potential returns per unit of risk. Regional Container Lines is currently generating about -0.2 per unit of risk. If you would invest  32.00  in Kiattana Transport Public on October 22, 2024 and sell it today you would lose (1.00) from holding Kiattana Transport Public or give up 3.12% of portfolio value over 90 days.

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

Kiattana Transport Public  vs.  Regional Container Lines

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 latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Regional Container Lines

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Regional Container Lines are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Regional Container is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kiattana Transport and Regional Container

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

The idea behind Kiattana Transport Public and Regional Container Lines 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.