Correlation Between Kasikornbank Public and Next Capital
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Next Capital 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 Next Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Next Capital Public, you can compare the effects of market volatilities on Kasikornbank Public and Next Capital 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 Next Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Next Capital.
Diversification Opportunities for Kasikornbank Public and Next Capital
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kasikornbank and Next is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Next Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Capital 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 Next Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Next Capital Public has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Next Capital go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Next Capital
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 0.26 times more return on investment than Next Capital. However, Kasikornbank Public is 3.9 times less risky than Next Capital. It trades about 0.07 of its potential returns per unit of risk. Next Capital Public is currently generating about -0.01 per unit of risk. If you would invest 14,311 in Kasikornbank Public on August 25, 2024 and sell it today you would earn a total of 639.00 from holding Kasikornbank Public or generate 4.47% 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. Next Capital Public
Performance |
| Timeline |
| Kasikornbank Public |
| Next Capital Public |
Kasikornbank Public and Next Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Next Capital
The main advantage of trading using opposite Kasikornbank Public and Next Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Next Capital 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 Next Capital will offset losses from the drop in Next Capital'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 |
| Next Capital vs. Muangthai Capital Public | Next Capital vs. Com7 PCL | Next Capital vs. Chayo Group Public | Next Capital vs. JMT Network Services |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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