Correlation Between BTS Group and Kasikornbank Public
Can any of the company-specific risk be diversified away by investing in both BTS Group 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 BTS Group and Kasikornbank Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTS Group Holdings and Kasikornbank Public, you can compare the effects of market volatilities on BTS Group 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 BTS Group with a short position of Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTS Group and Kasikornbank Public.
Diversification Opportunities for BTS Group and Kasikornbank Public
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BTS and Kasikornbank is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings and Kasikornbank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and BTS Group 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 BTS Group Holdings 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 BTS Group i.e., BTS Group and Kasikornbank Public go up and down completely randomly.
Pair Corralation between BTS Group and Kasikornbank Public
Assuming the 90 days trading horizon BTS Group is expected to generate 10.73 times less return on investment than Kasikornbank Public. In addition to that, BTS Group is 2.16 times more volatile than Kasikornbank Public. It trades about 0.01 of its total potential returns per unit of risk. Kasikornbank Public is currently generating about 0.13 per unit of volatility. If you would invest 11,592 in Kasikornbank Public on August 27, 2024 and sell it today you would earn a total of 3,358 from holding Kasikornbank Public or generate 28.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTS Group Holdings vs. Kasikornbank Public
Performance |
| Timeline |
| BTS Group Holdings |
| Kasikornbank Public |
BTS Group and Kasikornbank Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTS Group and Kasikornbank Public
The main advantage of trading using opposite BTS Group and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTS Group 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.| BTS Group vs. Tata Steel Public | BTS Group vs. Thaifoods Group Public | BTS Group vs. TMT Steel Public | BTS Group vs. The Erawan Group |
| Kasikornbank Public vs. Thai Energy Storage | Kasikornbank Public vs. Royal Orchid Hotel | Kasikornbank Public vs. Grand Canal Land | Kasikornbank Public vs. PRG Public |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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