Correlation Between Krungthai Card and KERRY EXPRESS

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

Diversification Opportunities for Krungthai Card and KERRY EXPRESS

-0.06

Correlation Coefficient

Krungthai Card  KERRY EXPRESS

Good diversification

The 3 months correlation between Krungthai and KERRY is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Krungthai Card Public and KERRY EXPRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERRY EXPRESS 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 KERRY EXPRESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERRY EXPRESS has no effect on the direction of Krungthai Card i.e., Krungthai Card and KERRY EXPRESS go up and down completely randomly.

Pair Corralation between Krungthai Card and KERRY EXPRESS

Assuming the 90 days trading horizon Krungthai Card Public is expected to generate 22.1 times more return on investment than KERRY EXPRESS. However, Krungthai Card is 22.1 times more volatile than KERRY EXPRESS. It trades about 0.17 of its potential returns per unit of risk. KERRY EXPRESS is currently generating about -0.14 per unit of risk. If you would invest  0.00  in Krungthai Card Public on September 3, 2024 and sell it today you would earn a total of  4,675  from holding Krungthai Card Public or generate 9.223372036854776E16% return on investment over 90 days.

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

Krungthai Card Public  vs.  KERRY EXPRESS

Krungthai Card Public

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Krungthai Card Public are ranked lower than 13 (%) 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.

KERRY EXPRESS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KERRY EXPRESS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Krungthai Card and KERRY EXPRESS

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

The idea behind Krungthai Card Public and KERRY EXPRESS 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.