Correlation Between Kiatnakin Phatra and Heng Leasing

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

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

Diversification Opportunities for Kiatnakin Phatra and Heng Leasing

0.17

Correlation Coefficient

Kiatnakin Phatra  Heng Leasing

Average diversification

The 3 months correlation between Kiatnakin and Heng is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kiatnakin Phatra Bank and Heng Leasing Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heng Leasing Capital and Kiatnakin Phatra 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 Kiatnakin Phatra Bank are associated (or correlated) with Heng Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heng Leasing Capital has no effect on the direction of Kiatnakin Phatra i.e., Kiatnakin Phatra and Heng Leasing go up and down completely randomly.

Pair Corralation between Kiatnakin Phatra and Heng Leasing

Assuming the 90 days trading horizon Kiatnakin Phatra Bank is expected to generate 0.95 times more return on investment than Heng Leasing. However, Kiatnakin Phatra Bank is 1.05 times less risky than Heng Leasing. It trades about 0.16 of its potential returns per unit of risk. Heng Leasing Capital is currently generating about -0.05 per unit of risk. If you would invest  4,521  in Kiatnakin Phatra Bank on April 24, 2025 and sell it today you would earn a total of  754.00  from holding Kiatnakin Phatra Bank or generate 16.68% return on investment over 90 days.

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

Kiatnakin Phatra Bank  vs.  Heng Leasing Capital

Kiatnakin Phatra Bank

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kiatnakin Phatra Bank are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Kiatnakin Phatra disclosed solid returns over the last few months and may actually be approaching a breakup point.

Heng Leasing Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Heng Leasing Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Heng Leasing is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Kiatnakin Phatra and Heng Leasing

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

The idea behind Kiatnakin Phatra Bank and Heng Leasing Capital 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.