Correlation Between Kiattana Transport and Vintcom Technology

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

Diversification Opportunities for Kiattana Transport and Vintcom Technology

-0.43

Correlation Coefficient

Kiattana Transport  Vintcom Technology

Very good diversification

The 3 months correlation between Kiattana and Vintcom is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kiattana Transport Public and Vintcom Technology PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vintcom Technology PCL 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 Vintcom Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vintcom Technology PCL has no effect on the direction of Kiattana Transport i.e., Kiattana Transport and Vintcom Technology go up and down completely randomly.

Pair Corralation between Kiattana Transport and Vintcom Technology

Assuming the 90 days trading horizon Kiattana Transport Public is expected to under-perform the Vintcom Technology. In addition to that, Kiattana Transport is 1.84 times more volatile than Vintcom Technology PCL. It trades about -0.03 of its total potential returns per unit of risk. Vintcom Technology PCL is currently generating about 0.04 per unit of volatility. If you would invest  223.00  in Vintcom Technology PCL on December 24, 2024 and sell it today you would earn a total of  7.00  from holding Vintcom Technology PCL or generate 3.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Kiattana Transport Public  vs.  Vintcom Technology PCL

Kiattana Transport Public

Risk-Adjusted Performance

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 quite persistent forward-looking signals, Kiattana Transport is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Vintcom Technology PCL

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Vintcom Technology PCL are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Vintcom Technology is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Kiattana Transport and Vintcom Technology

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

The idea behind Kiattana Transport Public and Vintcom Technology PCL 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.