Correlation Between Grand Canal and Kasikornbank Public
Can any of the company-specific risk be diversified away by investing in both Grand Canal 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 Grand Canal and Kasikornbank Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Canal Land and Kasikornbank Public, you can compare the effects of market volatilities on Grand Canal 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 Grand Canal with a short position of Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Canal and Kasikornbank Public.
Diversification Opportunities for Grand Canal and Kasikornbank Public
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grand and Kasikornbank is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Grand Canal Land and Kasikornbank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and Grand Canal 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 Grand Canal Land 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 Grand Canal i.e., Grand Canal and Kasikornbank Public go up and down completely randomly.
Pair Corralation between Grand Canal and Kasikornbank Public
Assuming the 90 days trading horizon Grand Canal Land is expected to generate 3.15 times more return on investment than Kasikornbank Public. However, Grand Canal is 3.15 times more volatile than Kasikornbank Public. It trades about 0.14 of its potential returns per unit of risk. Kasikornbank Public is currently generating about 0.02 per unit of risk. If you would invest 154.00 in Grand Canal Land on August 29, 2024 and sell it today you would earn a total of 11.00 from holding Grand Canal Land or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Canal Land vs. Kasikornbank Public
Performance |
| Timeline |
| Grand Canal Land |
| Kasikornbank Public |
Grand Canal and Kasikornbank Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Canal and Kasikornbank Public
The main advantage of trading using opposite Grand Canal and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Canal 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 Grand Canal Land and Kasikornbank Public 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.| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |