Correlation Between Kasikornbank Public and PMC LABEL

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Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and PMC LABEL 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 PMC LABEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and PMC LABEL MATERIALS, you can compare the effects of market volatilities on Kasikornbank Public and PMC LABEL 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 PMC LABEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and PMC LABEL.

Diversification Opportunities for Kasikornbank Public and PMC LABEL

-0.8
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Kasikornbank and PMC is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and PMC LABEL MATERIALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PMC LABEL MATERIALS 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 PMC LABEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PMC LABEL MATERIALS has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and PMC LABEL go up and down completely randomly.

Pair Corralation between Kasikornbank Public and PMC LABEL

Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 0.45 times more return on investment than PMC LABEL. However, Kasikornbank Public is 2.22 times less risky than PMC LABEL. It trades about 0.23 of its potential returns per unit of risk. PMC LABEL MATERIALS is currently generating about -0.32 per unit of risk. If you would invest  15,500  in Kasikornbank Public on November 2, 2024 and sell it today you would earn a total of  650.00  from holding Kasikornbank Public or generate 4.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy95.45%
ValuesDaily Returns

Kasikornbank Public  vs.  PMC LABEL MATERIALS

 Performance 
       Timeline  
Kasikornbank Public 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Kasikornbank Public are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Kasikornbank Public may actually be approaching a critical reversion point that can send shares even higher in March 2025.
PMC LABEL MATERIALS 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days PMC LABEL MATERIALS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in March 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Kasikornbank Public and PMC LABEL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kasikornbank Public and PMC LABEL

The main advantage of trading using opposite Kasikornbank Public and PMC LABEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, PMC LABEL 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 PMC LABEL will offset losses from the drop in PMC LABEL's long position.
The idea behind Kasikornbank Public and PMC LABEL MATERIALS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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.

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