Correlation Between Broadway Financial and Kasikornbank Public

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Can any of the company-specific risk be diversified away by investing in both Broadway Financial 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 Broadway Financial and Kasikornbank Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broadway Financial and Kasikornbank Public Co, you can compare the effects of market volatilities on Broadway Financial 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 Broadway Financial with a short position of Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadway Financial and Kasikornbank Public.

Diversification Opportunities for Broadway Financial and Kasikornbank Public

0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Broadway and Kasikornbank is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Broadway Financial and Kasikornbank Public Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and Broadway Financial 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 Broadway Financial 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 Broadway Financial i.e., Broadway Financial and Kasikornbank Public go up and down completely randomly.

Pair Corralation between Broadway Financial and Kasikornbank Public

Given the investment horizon of 90 days Broadway Financial is expected to generate 1.29 times more return on investment than Kasikornbank Public. However, Broadway Financial is 1.29 times more volatile than Kasikornbank Public Co. It trades about 0.1 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  719.00  in Broadway Financial on November 4, 2024 and sell it today you would earn a total of  51.00  from holding Broadway Financial or generate 7.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Broadway Financial  vs.  Kasikornbank Public Co

 Performance 
       Timeline  
Broadway Financial 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Broadway Financial are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Broadway Financial exhibited solid returns over the last few months and may actually be approaching a breakup point.
Kasikornbank Public 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Kasikornbank Public Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Kasikornbank Public showed solid returns over the last few months and may actually be approaching a breakup point.

Broadway Financial and Kasikornbank Public Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Broadway Financial and Kasikornbank Public

The main advantage of trading using opposite Broadway Financial and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadway Financial 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.
The idea behind Broadway Financial and Kasikornbank Public Co 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.
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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