Correlation Between K W and Bangkok Union

Can any of the company-specific risk be diversified away by investing in both K W and Bangkok Union 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 K W and Bangkok Union into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between K W Metal and Bangkok Union Insurance, you can compare the effects of market volatilities on K W and Bangkok Union 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 K W with a short position of Bangkok Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of K W and Bangkok Union.

Diversification Opportunities for K W and Bangkok Union

0.71

Correlation Coefficient

K W  Bangkok Union

Poor diversification

The 3 months correlation between KWM and Bangkok is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding K W Metal and Bangkok Union Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Union Insurance and K W 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 K W Metal are associated (or correlated) with Bangkok Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Union Insurance has no effect on the direction of K W i.e., K W and Bangkok Union go up and down completely randomly.

Pair Corralation between K W and Bangkok Union

Assuming the 90 days trading horizon K W Metal is expected to generate 0.73 times more return on investment than Bangkok Union. However, K W Metal is 1.36 times less risky than Bangkok Union. It trades about -0.03 of its potential returns per unit of risk. Bangkok Union Insurance is currently generating about -0.06 per unit of risk. If you would invest  103.00  in K W Metal on April 24, 2025 and sell it today you would lose (4.00) from holding K W Metal or give up 3.88% of portfolio value over 90 days.

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

K W Metal  vs.  Bangkok Union Insurance

K W Metal

Risk-Adjusted Performance

Very Weak

Over the last 90 days K W Metal has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, K W is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Bangkok Union Insurance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bangkok Union Insurance 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 K W and Bangkok Union

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

The idea behind K W Metal and Bangkok Union Insurance 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 Anywhere module to track or share privately all of your investments from the convenience of any device.