Correlation Between SHIP HEALTHCARE and Kasikornbank Public
Can any of the company-specific risk be diversified away by investing in both SHIP HEALTHCARE and Kasikornbank Public 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 SHIP HEALTHCARE and Kasikornbank Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHIP HEALTHCARE HLDGINC and Kasikornbank Public, you can compare the effects of market volatilities on SHIP HEALTHCARE and Kasikornbank Public 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 SHIP HEALTHCARE with a short position of Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHIP HEALTHCARE and Kasikornbank Public.
Diversification Opportunities for SHIP HEALTHCARE and Kasikornbank Public
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between SHIP and Kasikornbank is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding SHIP HEALTHCARE HLDGINC and Kasikornbank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and SHIP HEALTHCARE 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 SHIP HEALTHCARE HLDGINC are associated (or correlated) with Kasikornbank Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kasikornbank Public has no effect on the direction of SHIP HEALTHCARE i.e., SHIP HEALTHCARE and Kasikornbank Public go up and down completely randomly.
Pair Corralation between SHIP HEALTHCARE and Kasikornbank Public
Assuming the 90 days horizon SHIP HEALTHCARE is expected to generate 3.32 times less return on investment than Kasikornbank Public. But when comparing it to its historical volatility, SHIP HEALTHCARE HLDGINC is 1.28 times less risky than Kasikornbank Public. It trades about 0.02 of its potential returns per unit of risk. Kasikornbank Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 198.00 in Kasikornbank Public on September 12, 2024 and sell it today you would earn a total of 230.00 from holding Kasikornbank Public or generate 116.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SHIP HEALTHCARE HLDGINC vs. Kasikornbank Public
Performance |
| Timeline |
| SHIP HEALTHCARE HLDGINC |
| Kasikornbank Public |
SHIP HEALTHCARE and Kasikornbank Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHIP HEALTHCARE and Kasikornbank Public
The main advantage of trading using opposite SHIP HEALTHCARE and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHIP HEALTHCARE position performs unexpectedly, Kasikornbank Public 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 Kasikornbank Public will offset losses from the drop in Kasikornbank Public's long position.| SHIP HEALTHCARE vs. Superior Plus Corp | SHIP HEALTHCARE vs. NMI Holdings | SHIP HEALTHCARE vs. SIVERS SEMICONDUCTORS AB | SHIP HEALTHCARE vs. NorAm Drilling AS |
| Kasikornbank Public vs. POSBO UNSPADRS20YC1 | Kasikornbank Public vs. Postal Savings Bank | Kasikornbank Public vs. UTD OV BK LOC ADR1 | Kasikornbank Public vs. Superior Plus Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |