Correlation Between Kasikornbank Public and Home Product
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By analyzing existing cross correlation between Kasikornbank Public and Home Product Center, you can compare the effects of market volatilities on Kasikornbank Public and Home Product 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 Home Product. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Home Product.
Diversification Opportunities for Kasikornbank Public and Home Product
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kasikornbank and Home is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Home Product Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Product Center 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 Home Product. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Product Center has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Home Product go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Home Product
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 0.75 times more return on investment than Home Product. However, Kasikornbank Public is 1.33 times less risky than Home Product. It trades about 0.01 of its potential returns per unit of risk. Home Product Center is currently generating about -0.04 per unit of risk. If you would invest 14,250 in Kasikornbank Public on August 28, 2024 and sell it today you would earn a total of 750.00 from holding Kasikornbank Public or generate 5.26% 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. Home Product Center
Performance |
| Timeline |
| Kasikornbank Public |
| Home Product Center |
Kasikornbank Public and Home Product Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Home Product
The main advantage of trading using opposite Kasikornbank Public and Home Product positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Home Product 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 Home Product will offset losses from the drop in Home Product'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 |
| Home Product vs. SCB X Public | Home Product vs. Kasikornbank Public | Home Product vs. PTT Public | Home Product vs. Kasikornbank 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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