Correlation Between President Bakery and Krungthai Card
Can any of the company-specific risk be diversified away by investing in both President Bakery and Krungthai Card 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 President Bakery and Krungthai Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between President Bakery Public and Krungthai Card Public, you can compare the effects of market volatilities on President Bakery and Krungthai Card 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 President Bakery with a short position of Krungthai Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of President Bakery and Krungthai Card.
Diversification Opportunities for President Bakery and Krungthai Card
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between President and Krungthai is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding President Bakery Public and Krungthai Card Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krungthai Card Public and President Bakery 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 President Bakery Public are associated (or correlated) with Krungthai Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krungthai Card Public has no effect on the direction of President Bakery i.e., President Bakery and Krungthai Card go up and down completely randomly.
Pair Corralation between President Bakery and Krungthai Card
Assuming the 90 days horizon President Bakery Public is expected to under-perform the Krungthai Card. But the stock apears to be less risky and, when comparing its historical volatility, President Bakery Public is 95.41 times less risky than Krungthai Card. The stock trades about -0.04 of its potential returns per unit of risk. The Krungthai Card Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,935 in Krungthai Card Public on September 23, 2024 and sell it today you would lose (1,235) from holding Krungthai Card Public or give up 20.81% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
President Bakery Public vs. Krungthai Card Public
Performance |
Timeline |
President Bakery Public |
Krungthai Card Public |
President Bakery and Krungthai Card Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with President Bakery and Krungthai Card
The main advantage of trading using opposite President Bakery and Krungthai Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if President Bakery position performs unexpectedly, Krungthai Card 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 Krungthai Card will offset losses from the drop in Krungthai Card's long position.President Bakery vs. GFPT Public | President Bakery vs. Thai Union Group | President Bakery vs. Com7 PCL | President Bakery vs. Ichitan Group Public |
Krungthai Card vs. Amanah Leasing Public | Krungthai Card vs. Muangthai Capital Public | Krungthai Card vs. Infraset Public | Krungthai Card vs. JMT Network Services |
Check out your portfolio center.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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |