Correlation Between Phatra Leasing and KGI Securities

Can any of the company-specific risk be diversified away by investing in both Phatra Leasing and KGI Securities 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 Phatra Leasing and KGI Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Phatra Leasing Public and KGI Securities Public, you can compare the effects of market volatilities on Phatra Leasing and KGI Securities 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 Phatra Leasing with a short position of KGI Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phatra Leasing and KGI Securities.

Diversification Opportunities for Phatra Leasing and KGI Securities

-0.68

Correlation Coefficient

Phatra Leasing  KGI Securities

Excellent diversification

The 3 months correlation between Phatra and KGI is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Phatra Leasing Public and KGI Securities Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KGI Securities Public and Phatra Leasing 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 Phatra Leasing Public are associated (or correlated) with KGI Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KGI Securities Public has no effect on the direction of Phatra Leasing i.e., Phatra Leasing and KGI Securities go up and down completely randomly.

Pair Corralation between Phatra Leasing and KGI Securities

Assuming the 90 days horizon Phatra Leasing Public is expected to under-perform the KGI Securities. In addition to that, Phatra Leasing is 5.27 times more volatile than KGI Securities Public. It trades about -0.18 of its total potential returns per unit of risk. KGI Securities Public is currently generating about 0.1 per unit of volatility. If you would invest  420.00  in KGI Securities Public on December 25, 2024 and sell it today you would earn a total of  16.00  from holding KGI Securities Public or generate 3.81% return on investment over 90 days.

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

Phatra Leasing Public  vs.  KGI Securities Public

Phatra Leasing Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Phatra Leasing Public 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 quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

KGI Securities Public

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KGI Securities Public are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward indicators, KGI Securities 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 Phatra Leasing and KGI Securities

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

The idea behind Phatra Leasing Public and KGI Securities 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.