Correlation Between Kasikornbank Public and Capital Engineering
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Capital Engineering 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 Capital Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Capital Engineering Network, you can compare the effects of market volatilities on Kasikornbank Public and Capital Engineering 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 Capital Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Capital Engineering.
Diversification Opportunities for Kasikornbank Public and Capital Engineering
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kasikornbank and Capital is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Capital Engineering Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Engineering 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 Capital Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Engineering has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Capital Engineering go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Capital Engineering
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 1.92 times more return on investment than Capital Engineering. However, Kasikornbank Public is 1.92 times more volatile than Capital Engineering Network. It trades about 0.04 of its potential returns per unit of risk. Capital Engineering Network is currently generating about -0.06 per unit of risk. If you would invest 14,850 in Kasikornbank Public on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Kasikornbank Public or generate 0.67% 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. Capital Engineering Network
Performance |
| Timeline |
| Kasikornbank Public |
| Capital Engineering |
Kasikornbank Public and Capital Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Capital Engineering
The main advantage of trading using opposite Kasikornbank Public and Capital Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Capital Engineering 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 Capital Engineering will offset losses from the drop in Capital Engineering's long position.| Kasikornbank Public vs. SCB X Public | Kasikornbank Public vs. Bangkok Bank Public | Kasikornbank Public vs. PTT Public | Kasikornbank Public vs. CP ALL Public |
| Capital Engineering vs. 2S Metal Public | Capital Engineering vs. AAPICO Hitech Public | Capital Engineering vs. AJ Plast 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 Stocks Directory module to find actively traded stocks across global markets.
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