Correlation Between Kasikornbank Public and Beauty Community
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By analyzing existing cross correlation between Kasikornbank Public and Beauty Community Public, you can compare the effects of market volatilities on Kasikornbank Public and Beauty Community 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 Beauty Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Beauty Community.
Diversification Opportunities for Kasikornbank Public and Beauty Community
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kasikornbank and Beauty is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Beauty Community Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beauty Community 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 Beauty Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beauty Community Public has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Beauty Community go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Beauty Community
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 102.55 times less return on investment than Beauty Community. But when comparing it to its historical volatility, Kasikornbank Public is 38.3 times less risky than Beauty Community. It trades about 0.01 of its potential returns per unit of risk. Beauty Community Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 125.00 in Beauty Community Public on August 30, 2024 and sell it today you would lose (88.00) from holding Beauty Community Public or give up 70.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. Beauty Community Public
Performance |
| Timeline |
| Kasikornbank Public |
| Beauty Community Public |
Kasikornbank Public and Beauty Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Beauty Community
The main advantage of trading using opposite Kasikornbank Public and Beauty Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Beauty Community 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 Beauty Community will offset losses from the drop in Beauty Community's long position.| Kasikornbank Public vs. PTT Public | Kasikornbank Public vs. CP ALL Public | Kasikornbank Public vs. SCB X Public | Kasikornbank Public vs. Airports of Thailand |
| Beauty Community vs. CP ALL Public | Beauty Community vs. Bangkok Dusit Medical | Beauty Community vs. Central Pattana Public | Beauty Community vs. Advanced Info Service |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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