Correlation Between Kasikornbank Public and PCS Machine
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and PCS Machine 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 PCS Machine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and PCS Machine Group, you can compare the effects of market volatilities on Kasikornbank Public and PCS Machine 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 PCS Machine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and PCS Machine.
Diversification Opportunities for Kasikornbank Public and PCS Machine
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kasikornbank and PCS is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and PCS Machine Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PCS Machine Group 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 PCS Machine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PCS Machine Group has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and PCS Machine go up and down completely randomly.
Pair Corralation between Kasikornbank Public and PCS Machine
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 52.49 times less return on investment than PCS Machine. But when comparing it to its historical volatility, Kasikornbank Public is 37.52 times less risky than PCS Machine. It trades about 0.03 of its potential returns per unit of risk. PCS Machine Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 477.00 in PCS Machine Group on August 30, 2024 and sell it today you would lose (49.00) from holding PCS Machine Group or give up 10.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. PCS Machine Group
Performance |
| Timeline |
| Kasikornbank Public |
| PCS Machine Group |
Kasikornbank Public and PCS Machine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and PCS Machine
The main advantage of trading using opposite Kasikornbank Public and PCS Machine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, PCS Machine 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 PCS Machine will offset losses from the drop in PCS Machine'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 |
| PCS Machine vs. CP ALL Public | PCS Machine vs. Bangkok Dusit Medical | PCS Machine vs. Central Pattana Public | PCS Machine vs. Advanced Info Service |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |