Correlation Between Kasikornbank Public and Srithai Superware
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Srithai Superware 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 Srithai Superware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Srithai Superware Public, you can compare the effects of market volatilities on Kasikornbank Public and Srithai Superware 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 Srithai Superware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Srithai Superware.
Diversification Opportunities for Kasikornbank Public and Srithai Superware
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kasikornbank and Srithai is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Srithai Superware Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srithai Superware 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 Srithai Superware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srithai Superware Public has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Srithai Superware go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Srithai Superware
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 60.02 times less return on investment than Srithai Superware. But when comparing it to its historical volatility, Kasikornbank Public is 75.07 times less risky than Srithai Superware. It trades about 0.1 of its potential returns per unit of risk. Srithai Superware Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 127.00 in Srithai Superware Public on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Srithai Superware Public or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. Srithai Superware Public
Performance |
| Timeline |
| Kasikornbank Public |
| Srithai Superware Public |
Kasikornbank Public and Srithai Superware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Srithai Superware
The main advantage of trading using opposite Kasikornbank Public and Srithai Superware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Srithai Superware 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 Srithai Superware will offset losses from the drop in Srithai Superware'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 |
| Srithai Superware vs. Krung Thai Bank | Srithai Superware vs. Halcyon Technology Public | Srithai Superware vs. Charoen Pokphand Foods | Srithai Superware vs. 2S Metal 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 Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |