Correlation Between Kasikornbank Public and Bangkok Bank
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By analyzing existing cross correlation between Kasikornbank Public and Bangkok Bank Public, you can compare the effects of market volatilities on Kasikornbank Public and Bangkok Bank 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 Kasikornbank Public with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Bangkok Bank.
Diversification Opportunities for Kasikornbank Public and Bangkok Bank
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kasikornbank and Bangkok is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Bangkok Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank Public and Kasikornbank Public 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 Kasikornbank Public are associated (or correlated) with Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank Public has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Bangkok Bank go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Bangkok Bank
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 1.02 times less return on investment than Bangkok Bank. But when comparing it to its historical volatility, Kasikornbank Public is 1.14 times less risky than Bangkok Bank. It trades about 0.11 of its potential returns per unit of risk. Bangkok Bank Public is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 13,900 in Bangkok Bank Public on November 2, 2024 and sell it today you would earn a total of 1,700 from holding Bangkok Bank Public or generate 12.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. Bangkok Bank Public
Performance |
| Timeline |
| Kasikornbank Public |
| Bangkok Bank Public |
Kasikornbank Public and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Bangkok Bank
The main advantage of trading using opposite Kasikornbank Public and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Bangkok Bank 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 Bangkok Bank will offset losses from the drop in Bangkok Bank's long position.| Kasikornbank Public vs. PTT Public | Kasikornbank Public vs. The Siam Commercial | Kasikornbank Public vs. CP ALL Public | Kasikornbank Public vs. SCB X Public |
| Bangkok Bank vs. SCB X Public | Bangkok Bank vs. Kasikornbank Public | Bangkok Bank vs. PTT Public | Bangkok Bank vs. The Siam Cement |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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