Correlation Between Kasikornbank Public and Siamgas
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Siamgas 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 Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Siamgas and Petrochemicals, you can compare the effects of market volatilities on Kasikornbank Public and Siamgas 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 Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Siamgas.
Diversification Opportunities for Kasikornbank Public and Siamgas
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kasikornbank and Siamgas is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Siamgas and Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siamgas and Petroche 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 Siamgas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siamgas and Petroche has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Siamgas go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Siamgas
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 1.05 times more return on investment than Siamgas. However, Kasikornbank Public is 1.05 times more volatile than Siamgas and Petrochemicals. It trades about 0.13 of its potential returns per unit of risk. Siamgas and Petrochemicals is currently generating about -0.04 per unit of risk. If you would invest 14,900 in Kasikornbank Public on September 22, 2024 and sell it today you would earn a total of 350.00 from holding Kasikornbank Public or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. Siamgas and Petrochemicals
Performance |
| Timeline |
| Kasikornbank Public |
| Siamgas and Petroche |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kasikornbank Public and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Siamgas
The main advantage of trading using opposite Kasikornbank Public and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Siamgas 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 Siamgas will offset losses from the drop in Siamgas' 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 |
| Siamgas vs. Bangchak Public | Siamgas vs. IRPC Public | Siamgas vs. PTT Exploration and | Siamgas vs. Star Petroleum Refining |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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