Correlation Between Kasikornbank Public and Thai President
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Thai President 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 Thai President into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Thai President Foods, you can compare the effects of market volatilities on Kasikornbank Public and Thai President 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 Thai President. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Thai President.
Diversification Opportunities for Kasikornbank Public and Thai President
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kasikornbank and Thai is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Thai President Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai President Foods 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 Thai President. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai President Foods has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Thai President go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Thai President
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 6.48 times more return on investment than Thai President. However, Kasikornbank Public is 6.48 times more volatile than Thai President Foods. It trades about -0.02 of its potential returns per unit of risk. Thai President Foods is currently generating about -0.17 per unit of risk. If you would invest 15,409 in Kasikornbank Public on January 23, 2025 and sell it today you would lose (259.00) from holding Kasikornbank Public or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. Thai President Foods
Performance |
| Timeline |
| Kasikornbank Public |
| Thai President Foods |
Kasikornbank Public and Thai President Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Thai President
The main advantage of trading using opposite Kasikornbank Public and Thai President positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Thai President 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 Thai President will offset losses from the drop in Thai President's long position.| Kasikornbank Public vs. SCB X Public | Kasikornbank Public vs. Bangkok Bank PCL | Kasikornbank Public vs. PTT Public | Kasikornbank Public vs. CP ALL Public |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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