Correlation Between Kasikornbank Public and Peoples Garment
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Peoples Garment 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 Peoples Garment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Peoples Garment Public, you can compare the effects of market volatilities on Kasikornbank Public and Peoples Garment 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 Peoples Garment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Peoples Garment.
Diversification Opportunities for Kasikornbank Public and Peoples Garment
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kasikornbank and Peoples is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Peoples Garment Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Garment 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 Peoples Garment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Garment Public has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Peoples Garment go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Peoples Garment
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 47.81 times less return on investment than Peoples Garment. But when comparing it to its historical volatility, Kasikornbank Public is 54.0 times less risky than Peoples Garment. It trades about 0.07 of its potential returns per unit of risk. Peoples Garment Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 861.00 in Peoples Garment Public on August 24, 2024 and sell it today you would earn a total of 34.00 from holding Peoples Garment Public or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Kasikornbank Public vs. Peoples Garment Public
Performance |
| Timeline |
| Kasikornbank Public |
| Peoples Garment Public |
Kasikornbank Public and Peoples Garment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Peoples Garment
The main advantage of trading using opposite Kasikornbank Public and Peoples Garment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Peoples Garment 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 Peoples Garment will offset losses from the drop in Peoples Garment'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 |
| Peoples Garment vs. SCB X Public | Peoples Garment vs. Kasikornbank Public | Peoples Garment vs. PTT Public | Peoples Garment vs. Kasikornbank 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |