Correlation Between Kasikornbank Public and Global Power
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Global Power 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 Global Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Global Power Synergy, you can compare the effects of market volatilities on Kasikornbank Public and Global Power 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 Global Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Global Power.
Diversification Opportunities for Kasikornbank Public and Global Power
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kasikornbank and Global is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Global Power Synergy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Power Synergy 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 Global Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Power Synergy has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Global Power go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Global Power
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 0.43 times more return on investment than Global Power. However, Kasikornbank Public is 2.3 times less risky than Global Power. It trades about 0.02 of its potential returns per unit of risk. Global Power Synergy is currently generating about -0.02 per unit of risk. If you would invest 14,900 in Kasikornbank Public on August 29, 2024 and sell it today you would earn a total of 50.00 from holding Kasikornbank Public or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. Global Power Synergy
Performance |
| Timeline |
| Kasikornbank Public |
| Global Power Synergy |
Kasikornbank Public and Global Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Global Power
The main advantage of trading using opposite Kasikornbank Public and Global Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Global Power 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 Global Power will offset losses from the drop in Global Power'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 |
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.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |