Correlation Between Kasikornbank Public and IRPC Public
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and IRPC Public 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 IRPC Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and IRPC Public, you can compare the effects of market volatilities on Kasikornbank Public and IRPC Public 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 IRPC Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and IRPC Public.
Diversification Opportunities for Kasikornbank Public and IRPC Public
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kasikornbank and IRPC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and IRPC Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRPC 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 IRPC Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRPC Public has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and IRPC Public go up and down completely randomly.
Pair Corralation between Kasikornbank Public and IRPC Public
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 0.44 times more return on investment than IRPC Public. However, Kasikornbank Public is 2.28 times less risky than IRPC Public. It trades about -0.22 of its potential returns per unit of risk. IRPC Public is currently generating about -0.14 per unit of risk. If you would invest 15,900 in Kasikornbank Public on December 11, 2024 and sell it today you would lose (1,100) from holding Kasikornbank Public or give up 6.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. IRPC Public
Performance |
| Timeline |
| Kasikornbank Public |
| IRPC Public |
Kasikornbank Public and IRPC Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and IRPC Public
The main advantage of trading using opposite Kasikornbank Public and IRPC Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, IRPC Public 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 IRPC Public will offset losses from the drop in IRPC Public'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 |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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