Correlation Between Kiatnakin Phatra and Aikchol Hospital

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Can any of the company-specific risk be diversified away by investing in both Kiatnakin Phatra and Aikchol Hospital 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 Kiatnakin Phatra and Aikchol Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiatnakin Phatra Bank and Aikchol Hospital Public, you can compare the effects of market volatilities on Kiatnakin Phatra and Aikchol Hospital 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 Kiatnakin Phatra with a short position of Aikchol Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiatnakin Phatra and Aikchol Hospital.

Diversification Opportunities for Kiatnakin Phatra and Aikchol Hospital

0.56
  Correlation Coefficient

Very weak diversification

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

Pair Corralation between Kiatnakin Phatra and Aikchol Hospital

Assuming the 90 days trading horizon Kiatnakin Phatra Bank is expected to generate 1.79 times more return on investment than Aikchol Hospital. However, Kiatnakin Phatra is 1.79 times more volatile than Aikchol Hospital Public. It trades about 0.09 of its potential returns per unit of risk. Aikchol Hospital Public is currently generating about 0.0 per unit of risk. If you would invest  5,150  in Kiatnakin Phatra Bank on October 11, 2024 and sell it today you would earn a total of  125.00  from holding Kiatnakin Phatra Bank or generate 2.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Kiatnakin Phatra Bank  vs.  Aikchol Hospital Public

 Performance 
       Timeline  
Kiatnakin Phatra Bank 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Kiatnakin Phatra Bank are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Kiatnakin Phatra is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
Aikchol Hospital Public 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Aikchol Hospital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Aikchol Hospital is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Kiatnakin Phatra and Aikchol Hospital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kiatnakin Phatra and Aikchol Hospital

The main advantage of trading using opposite Kiatnakin Phatra and Aikchol Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiatnakin Phatra position performs unexpectedly, Aikchol Hospital 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 Aikchol Hospital will offset losses from the drop in Aikchol Hospital's long position.
The idea behind Kiatnakin Phatra Bank and Aikchol Hospital 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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