Correlation Between Thitikorn Public and KGI Securities

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

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

Diversification Opportunities for Thitikorn Public and KGI Securities

0.88

Correlation Coefficient

Thitikorn Public  KGI Securities

Very poor diversification

The 3 months correlation between Thitikorn and KGI is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Thitikorn 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 Thitikorn Public 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 Thitikorn 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 Thitikorn Public i.e., Thitikorn Public and KGI Securities go up and down completely randomly.

Pair Corralation between Thitikorn Public and KGI Securities

Assuming the 90 days horizon Thitikorn Public is expected to generate 56.71 times more return on investment than KGI Securities. However, Thitikorn Public is 56.71 times more volatile than KGI Securities Public. It trades about 0.04 of its potential returns per unit of risk. KGI Securities Public is currently generating about -0.01 per unit of risk. If you would invest  795.00  in Thitikorn Public on October 11, 2024 and sell it today you would lose (351.00) from holding Thitikorn Public or give up 44.15% of portfolio value over 90 days.

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

Thitikorn Public  vs.  KGI Securities Public

Thitikorn Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thitikorn Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

KGI Securities Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KGI Securities Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Thitikorn Public and KGI Securities

The main advantage of trading using opposite Thitikorn Public and KGI Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thitikorn Public 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 Thitikorn 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.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..