Correlation Between Krungthai Card and Bhiraj Office

Can any of the company-specific risk be diversified away by investing in both Krungthai Card and Bhiraj Office 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 Krungthai Card and Bhiraj Office into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Krungthai Card and Bhiraj Office

0.11

Correlation Coefficient

Krungthai Card  Bhiraj Office

Average diversification

The 3 months correlation between Krungthai and Bhiraj is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Krungthai Card Public and Bhiraj Office Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bhiraj Office Leasehold and Krungthai Card 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 Krungthai Card Public are associated (or correlated) with Bhiraj Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bhiraj Office Leasehold has no effect on the direction of Krungthai Card i.e., Krungthai Card and Bhiraj Office go up and down completely randomly.

Pair Corralation between Krungthai Card and Bhiraj Office

Assuming the 90 days trading horizon Krungthai Card is expected to generate 1.24 times less return on investment than Bhiraj Office. In addition to that, Krungthai Card is 1.04 times more volatile than Bhiraj Office Leasehold. It trades about 0.04 of its total potential returns per unit of risk. Bhiraj Office Leasehold is currently generating about 0.05 per unit of volatility. If you would invest  500.00  in Bhiraj Office Leasehold on September 24, 2024 and sell it today you would earn a total of  5.00  from holding Bhiraj Office Leasehold or generate 1.0% return on investment over 90 days.

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

Krungthai Card Public  vs.  Bhiraj Office Leasehold

Krungthai Card Public

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Krungthai Card Public are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Krungthai Card sustained solid returns over the last few months and may actually be approaching a breakup point.

Bhiraj Office Leasehold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bhiraj Office Leasehold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Bhiraj Office is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Krungthai Card and Bhiraj Office

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

The idea behind Krungthai Card Public and Bhiraj Office Leasehold 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.