Correlation Between Kasikornbank Public and Land
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Land 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 Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Land and Houses, you can compare the effects of market volatilities on Kasikornbank Public and Land 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 Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Land.
Diversification Opportunities for Kasikornbank Public and Land
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kasikornbank and Land is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Land and Houses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land and Houses 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 Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land and Houses has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Land go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Land
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 0.61 times more return on investment than Land. However, Kasikornbank Public is 1.64 times less risky than Land. It trades about 0.1 of its potential returns per unit of risk. Land and Houses is currently generating about -0.07 per unit of risk. If you would invest 15,750 in Kasikornbank Public on December 26, 2024 and sell it today you would earn a total of 500.00 from holding Kasikornbank Public or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. Land and Houses
Performance |
| Timeline |
| Kasikornbank Public |
| Land and Houses |
Kasikornbank Public and Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Land
The main advantage of trading using opposite Kasikornbank Public and Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Land 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 Land will offset losses from the drop in Land's long position.| Kasikornbank Public vs. SCB X Public | Kasikornbank Public vs. Bangkok Bank PCL | Kasikornbank Public vs. PTT Public | Kasikornbank Public vs. CP ALL 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |