Correlation Between KTBST Mixed and SCB X

Can any of the company-specific risk be diversified away by investing in both KTBST Mixed and SCB X 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 KTBST Mixed and SCB X into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KTBST Mixed Leasehold and SCB X Public, you can compare the effects of market volatilities on KTBST Mixed and SCB X 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 KTBST Mixed with a short position of SCB X. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTBST Mixed and SCB X.

Diversification Opportunities for KTBST Mixed and SCB X

-0.31

Correlation Coefficient

KTBST Mixed  SCB X

Very good diversification

The 3 months correlation between KTBST and SCB is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding KTBST Mixed Leasehold and SCB X Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCB X Public and KTBST Mixed 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 KTBST Mixed Leasehold are associated (or correlated) with SCB X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCB X Public has no effect on the direction of KTBST Mixed i.e., KTBST Mixed and SCB X go up and down completely randomly.

Pair Corralation between KTBST Mixed and SCB X

Assuming the 90 days trading horizon KTBST Mixed is expected to generate 4.19 times less return on investment than SCB X. In addition to that, KTBST Mixed is 1.03 times more volatile than SCB X Public. It trades about 0.03 of its total potential returns per unit of risk. SCB X Public is currently generating about 0.11 per unit of volatility. If you would invest  11,750  in SCB X Public on December 30, 2024 and sell it today you would earn a total of  800.00  from holding SCB X Public or generate 6.81% return on investment over 90 days.

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

KTBST Mixed Leasehold  vs.  SCB X Public

KTBST Mixed Leasehold

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in KTBST Mixed Leasehold are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, KTBST Mixed is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

SCB X Public

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SCB X Public are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental drivers, SCB X may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with KTBST Mixed and SCB X

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

The idea behind KTBST Mixed Leasehold and SCB X 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 Transaction History module to view history of all your transactions and understand their impact on performance.