Correlation Between Kiatnakin Phatra and Micro Leasing

Can any of the company-specific risk be diversified away by investing in both Kiatnakin Phatra and Micro 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 Micro 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 Micro Leasing Public, you can compare the effects of market volatilities on Kiatnakin Phatra and Micro 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 Micro Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiatnakin Phatra and Micro Leasing.

Diversification Opportunities for Kiatnakin Phatra and Micro Leasing

-0.01

Correlation Coefficient

Kiatnakin Phatra  Micro Leasing

Good diversification

The 3 months correlation between Kiatnakin and Micro is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Kiatnakin Phatra Bank and Micro Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Leasing Public 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 Micro Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Leasing Public has no effect on the direction of Kiatnakin Phatra i.e., Kiatnakin Phatra and Micro Leasing go up and down completely randomly.

Pair Corralation between Kiatnakin Phatra and Micro Leasing

Assuming the 90 days trading horizon Kiatnakin Phatra Bank is expected to generate 0.59 times more return on investment than Micro Leasing. However, Kiatnakin Phatra Bank is 1.69 times less risky than Micro Leasing. It trades about 0.13 of its potential returns per unit of risk. Micro Leasing Public is currently generating about 0.04 per unit of risk. If you would invest  4,474  in Kiatnakin Phatra Bank on April 23, 2025 and sell it today you would earn a total of  576.00  from holding Kiatnakin Phatra Bank or generate 12.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.31%
Values	Daily Returns

Kiatnakin Phatra Bank  vs.  Micro Leasing Public

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 10 (%) 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.

Micro Leasing Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Micro Leasing Public are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Micro Leasing may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Kiatnakin Phatra and Micro Leasing

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

The idea behind Kiatnakin Phatra Bank and Micro Leasing 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.