Correlation Between TRC Construction and Kiatnakin Phatra

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

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

Diversification Opportunities for TRC Construction and Kiatnakin Phatra

-0.81

Correlation Coefficient

TRC Construction  Kiatnakin Phatra

Pay attention - limited upside

The 3 months correlation between TRC and Kiatnakin is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding TRC Construction Public and Kiatnakin Phatra Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiatnakin Phatra Bank and TRC Construction 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 TRC Construction Public are associated (or correlated) with Kiatnakin Phatra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiatnakin Phatra Bank has no effect on the direction of TRC Construction i.e., TRC Construction and Kiatnakin Phatra go up and down completely randomly.

Pair Corralation between TRC Construction and Kiatnakin Phatra

Assuming the 90 days trading horizon TRC Construction Public is expected to under-perform the Kiatnakin Phatra. In addition to that, TRC Construction is 5.45 times more volatile than Kiatnakin Phatra Bank. It trades about -0.11 of its total potential returns per unit of risk. Kiatnakin Phatra Bank is currently generating about 0.09 per unit of volatility. If you would invest  5,250  in Kiatnakin Phatra Bank on December 30, 2024 and sell it today you would earn a total of  425.00  from holding Kiatnakin Phatra Bank or generate 8.1% return on investment over 90 days.

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

TRC Construction Public  vs.  Kiatnakin Phatra Bank

TRC Construction Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days TRC Construction Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental indicators 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.

Kiatnakin Phatra Bank

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kiatnakin Phatra Bank are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Kiatnakin Phatra may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with TRC Construction and Kiatnakin Phatra

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

The idea behind TRC Construction Public and Kiatnakin Phatra Bank 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.