Correlation Between Kasikornbank Public and Mida Leasing
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Mida Leasing 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 Mida Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Mida Leasing Public, you can compare the effects of market volatilities on Kasikornbank Public and Mida Leasing 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 Mida Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Mida Leasing.
Diversification Opportunities for Kasikornbank Public and Mida Leasing
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kasikornbank and Mida is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Mida Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mida Leasing 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 Mida Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mida Leasing Public has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Mida Leasing go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Mida Leasing
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 34.44 times less return on investment than Mida Leasing. But when comparing it to its historical volatility, Kasikornbank Public is 38.29 times less risky than Mida Leasing. It trades about 0.04 of its potential returns per unit of risk. Mida Leasing Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 117.00 in Mida Leasing Public on November 2, 2024 and sell it today you would lose (68.00) from holding Mida Leasing Public or give up 58.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kasikornbank Public vs. Mida Leasing Public
Performance |
| Timeline |
| Kasikornbank Public |
| Mida Leasing Public |
Kasikornbank Public and Mida Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Mida Leasing
The main advantage of trading using opposite Kasikornbank Public and Mida Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Mida Leasing 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 Mida Leasing will offset losses from the drop in Mida Leasing'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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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