Correlation Between Kasikornbank Public and Hwa Fong
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Hwa Fong 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 Hwa Fong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Hwa Fong Rubber, you can compare the effects of market volatilities on Kasikornbank Public and Hwa Fong 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 Hwa Fong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Hwa Fong.
Diversification Opportunities for Kasikornbank Public and Hwa Fong
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kasikornbank and Hwa is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Hwa Fong Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hwa Fong Rubber 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 Hwa Fong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hwa Fong Rubber has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Hwa Fong go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Hwa Fong
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 0.61 times more return on investment than Hwa Fong. However, Kasikornbank Public is 1.64 times less risky than Hwa Fong. It trades about 0.02 of its potential returns per unit of risk. Hwa Fong Rubber is currently generating about -0.27 per unit of risk. If you would invest 14,900 in Kasikornbank Public on August 28, 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 | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kasikornbank Public vs. Hwa Fong Rubber
Performance |
| Timeline |
| Kasikornbank Public |
| Hwa Fong Rubber |
Kasikornbank Public and Hwa Fong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Hwa Fong
The main advantage of trading using opposite Kasikornbank Public and Hwa Fong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Hwa Fong 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 Hwa Fong will offset losses from the drop in Hwa Fong'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 |
| Hwa Fong vs. SCB X Public | Hwa Fong vs. Kasikornbank Public | Hwa Fong vs. PTT Public | Hwa Fong 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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