Correlation Between Kasikornbank Public and Asia Fiber
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Asia Fiber 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 Asia Fiber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Asia Fiber Public, you can compare the effects of market volatilities on Kasikornbank Public and Asia Fiber 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 Asia Fiber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Asia Fiber.
Diversification Opportunities for Kasikornbank Public and Asia Fiber
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kasikornbank and Asia is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Asia Fiber Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Fiber 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 Asia Fiber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Fiber Public has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Asia Fiber go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Asia Fiber
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 43.67 times less return on investment than Asia Fiber. But when comparing it to its historical volatility, Kasikornbank Public is 46.25 times less risky than Asia Fiber. It trades about 0.05 of its potential returns per unit of risk. Asia Fiber Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 630.00 in Asia Fiber Public on August 28, 2024 and sell it today you would lose (156.00) from holding Asia Fiber Public or give up 24.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. Asia Fiber Public
Performance |
| Timeline |
| Kasikornbank Public |
| Asia Fiber Public |
Kasikornbank Public and Asia Fiber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Asia Fiber
The main advantage of trading using opposite Kasikornbank Public and Asia Fiber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Asia Fiber 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 Asia Fiber will offset losses from the drop in Asia Fiber's long position.| Kasikornbank Public vs. Thai Energy Storage | Kasikornbank Public vs. Royal Orchid Hotel | Kasikornbank Public vs. Grand Canal Land | Kasikornbank Public vs. PRG Public |
| Asia Fiber vs. SCB X Public | Asia Fiber vs. Kasikornbank Public | Asia Fiber vs. PTT Public | Asia Fiber 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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