Correlation Between Krungdhep Sophon and Jack Chia

Can any of the company-specific risk be diversified away by investing in both Krungdhep Sophon and Jack Chia 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 Krungdhep Sophon and Jack Chia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Krungdhep Sophon Public and Jack Chia Industries, you can compare the effects of market volatilities on Krungdhep Sophon and Jack Chia 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 Krungdhep Sophon with a short position of Jack Chia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krungdhep Sophon and Jack Chia.

Diversification Opportunities for Krungdhep Sophon and Jack Chia

-0.14

Correlation Coefficient

Krungdhep Sophon  Jack Chia

Good diversification

The 3 months correlation between Krungdhep and Jack is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Krungdhep Sophon Public and Jack Chia Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Chia Industries and Krungdhep Sophon 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 Krungdhep Sophon Public are associated (or correlated) with Jack Chia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Chia Industries has no effect on the direction of Krungdhep Sophon i.e., Krungdhep Sophon and Jack Chia go up and down completely randomly.

Pair Corralation between Krungdhep Sophon and Jack Chia

Assuming the 90 days trading horizon Krungdhep Sophon Public is expected to generate 9.33 times more return on investment than Jack Chia. However, Krungdhep Sophon is 9.33 times more volatile than Jack Chia Industries. It trades about 0.01 of its potential returns per unit of risk. Jack Chia Industries is currently generating about 0.0 per unit of risk. If you would invest  32,600  in Krungdhep Sophon Public on September 18, 2024 and sell it today you would lose (1,600) from holding Krungdhep Sophon Public or give up 4.91% of portfolio value over 90 days.

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

Krungdhep Sophon Public  vs.  Jack Chia Industries

Krungdhep Sophon Public

Risk-Adjusted Performance

0 of 100

Very Weak

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

Jack Chia Industries

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jack Chia Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Jack Chia 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 Krungdhep Sophon and Jack Chia

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

The idea behind Krungdhep Sophon Public and Jack Chia Industries 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.