Correlation Between Kasikornbank Public and Millcon Steel
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Millcon Steel 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 Millcon Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Millcon Steel Public, you can compare the effects of market volatilities on Kasikornbank Public and Millcon Steel 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 Millcon Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Millcon Steel.
Diversification Opportunities for Kasikornbank Public and Millcon Steel
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kasikornbank and Millcon is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Millcon Steel Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millcon Steel 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 Millcon Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millcon Steel Public has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Millcon Steel go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Millcon Steel
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 3.51 times less return on investment than Millcon Steel. But when comparing it to its historical volatility, Kasikornbank Public is 16.37 times less risky than Millcon Steel. It trades about 0.21 of its potential returns per unit of risk. Millcon Steel Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Millcon Steel Public on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Millcon Steel Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. Millcon Steel Public
Performance |
| Timeline |
| Kasikornbank Public |
| Millcon Steel Public |
Kasikornbank Public and Millcon Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Millcon Steel
The main advantage of trading using opposite Kasikornbank Public and Millcon Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Millcon Steel 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 Millcon Steel will offset losses from the drop in Millcon Steel'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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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