Correlation Between BDO Unibank and Kasikornbank Public
Can any of the company-specific risk be diversified away by investing in both BDO Unibank 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 BDO Unibank and Kasikornbank Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BDO Unibank ADR and Kasikornbank Public Co, you can compare the effects of market volatilities on BDO Unibank 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 BDO Unibank with a short position of Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of BDO Unibank and Kasikornbank Public.
Diversification Opportunities for BDO Unibank and Kasikornbank Public
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between BDO and Kasikornbank is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding BDO Unibank ADR and Kasikornbank Public Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and BDO Unibank 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 BDO Unibank ADR 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 BDO Unibank i.e., BDO Unibank and Kasikornbank Public go up and down completely randomly.
Pair Corralation between BDO Unibank and Kasikornbank Public
Assuming the 90 days horizon BDO Unibank is expected to generate 9.27 times less return on investment than Kasikornbank Public. But when comparing it to its historical volatility, BDO Unibank ADR is 1.49 times less risky than Kasikornbank Public. It trades about 0.01 of its potential returns per unit of risk. Kasikornbank Public Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,296 in Kasikornbank Public Co on October 24, 2024 and sell it today you would earn a total of 568.00 from holding Kasikornbank Public Co or generate 43.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
BDO Unibank ADR vs. Kasikornbank Public Co
Performance |
| Timeline |
| BDO Unibank ADR |
| Kasikornbank Public |
BDO Unibank and Kasikornbank Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BDO Unibank and Kasikornbank Public
The main advantage of trading using opposite BDO Unibank and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BDO Unibank 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.| BDO Unibank vs. Swedbank AB | BDO Unibank vs. United Overseas Bank | BDO Unibank vs. KBC Groep NV | BDO Unibank vs. Jyske Bank AS |
| Kasikornbank Public vs. Turkiye Garanti Bankasi | Kasikornbank Public vs. Hang Seng Bank | Kasikornbank Public vs. PT Bank Rakyat | Kasikornbank Public vs. Delhi Bank 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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