Correlation Between Deckers Outdoor and Kasikornbank Public
Can any of the company-specific risk be diversified away by investing in both Deckers Outdoor 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 Deckers Outdoor and Kasikornbank Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deckers Outdoor and Kasikornbank Public Co, you can compare the effects of market volatilities on Deckers Outdoor 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 Deckers Outdoor with a short position of Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deckers Outdoor and Kasikornbank Public.
Diversification Opportunities for Deckers Outdoor and Kasikornbank Public
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deckers and Kasikornbank is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Deckers Outdoor and Kasikornbank Public Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and Deckers Outdoor 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 Deckers Outdoor 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 Deckers Outdoor i.e., Deckers Outdoor and Kasikornbank Public go up and down completely randomly.
Pair Corralation between Deckers Outdoor and Kasikornbank Public
Given the investment horizon of 90 days Deckers Outdoor is expected to generate 0.97 times more return on investment than Kasikornbank Public. However, Deckers Outdoor is 1.03 times less risky than Kasikornbank Public. It trades about 0.1 of its potential returns per unit of risk. Kasikornbank Public Co is currently generating about 0.03 per unit of risk. If you would invest 8,244 in Deckers Outdoor on August 29, 2024 and sell it today you would earn a total of 11,197 from holding Deckers Outdoor or generate 135.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deckers Outdoor vs. Kasikornbank Public Co
Performance |
| Timeline |
| Deckers Outdoor |
| Kasikornbank Public |
Deckers Outdoor and Kasikornbank Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deckers Outdoor and Kasikornbank Public
The main advantage of trading using opposite Deckers Outdoor and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deckers Outdoor 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.| Deckers Outdoor vs. On Holding | Deckers Outdoor vs. Skechers USA | Deckers Outdoor vs. Nike Inc | Deckers Outdoor vs. Steven Madden |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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