Correlation Between PT Bank and Kasikornbank Public
Can any of the company-specific risk be diversified away by investing in both PT Bank 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 PT Bank and Kasikornbank Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Rakyat and Kasikornbank Public Co, you can compare the effects of market volatilities on PT Bank 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 PT Bank with a short position of Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Kasikornbank Public.
Diversification Opportunities for PT Bank and Kasikornbank Public
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BKRKF and Kasikornbank is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Kasikornbank Public Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and PT Bank 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 PT Bank Rakyat 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 PT Bank i.e., PT Bank and Kasikornbank Public go up and down completely randomly.
Pair Corralation between PT Bank and Kasikornbank Public
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 2.67 times more return on investment than Kasikornbank Public. However, PT Bank is 2.67 times more volatile than Kasikornbank Public Co. It trades about 0.04 of its potential returns per unit of risk. Kasikornbank Public Co is currently generating about 0.07 per unit of risk. If you would invest 22.00 in PT Bank Rakyat on November 4, 2024 and sell it today you would earn a total of 0.00 from holding PT Bank Rakyat or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. Kasikornbank Public Co
Performance |
| Timeline |
| PT Bank Rakyat |
| Kasikornbank Public |
PT Bank and Kasikornbank Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Kasikornbank Public
The main advantage of trading using opposite PT Bank and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank 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.| PT Bank vs. Bank Mandiri Persero | PT Bank vs. Piraeus Bank SA | PT Bank vs. Eurobank Ergasias Services | PT Bank vs. Kasikornbank Public Co |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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