Correlation Between Kasikornbank Public and Advanced Connection
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Advanced Connection 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 Kasikornbank Public and Advanced Connection into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Advanced Connection, you can compare the effects of market volatilities on Kasikornbank Public and Advanced Connection 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 Advanced Connection. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Advanced Connection.
Diversification Opportunities for Kasikornbank Public and Advanced Connection
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kasikornbank and Advanced is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Advanced Connection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Connection 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 Advanced Connection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Connection has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Advanced Connection go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Advanced Connection
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 0.1 times more return on investment than Advanced Connection. However, Kasikornbank Public is 9.71 times less risky than Advanced Connection. It trades about 0.23 of its potential returns per unit of risk. Advanced Connection is currently generating about -0.25 per unit of risk. If you would invest 14,550 in Kasikornbank Public on August 31, 2024 and sell it today you would earn a total of 450.00 from holding Kasikornbank Public or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. Advanced Connection
Performance |
| Timeline |
| Kasikornbank Public |
| Advanced Connection |
Kasikornbank Public and Advanced Connection Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Advanced Connection
The main advantage of trading using opposite Kasikornbank Public and Advanced Connection positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Advanced Connection 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 Advanced Connection will offset losses from the drop in Advanced Connection's long position.| Kasikornbank Public vs. TISCO Financial Group | Kasikornbank Public vs. SCB X Public | Kasikornbank Public vs. Bangkok Bank Public |
| Advanced Connection vs. TRC Construction Public | Advanced Connection vs. Bangkok Expressway and | Advanced Connection vs. Lohakit Metal Public | Advanced Connection vs. Gunkul Engineering 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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