Correlation Between Kasikornbank Public and TPI Polene
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and TPI Polene 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 TPI Polene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and TPI Polene Public, you can compare the effects of market volatilities on Kasikornbank Public and TPI Polene 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 TPI Polene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and TPI Polene.
Diversification Opportunities for Kasikornbank Public and TPI Polene
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kasikornbank and TPI is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and TPI Polene Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPI Polene 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 TPI Polene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPI Polene Public has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and TPI Polene go up and down completely randomly.
Pair Corralation between Kasikornbank Public and TPI Polene
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 0.94 times more return on investment than TPI Polene. However, Kasikornbank Public is 1.06 times less risky than TPI Polene. It trades about 0.08 of its potential returns per unit of risk. TPI Polene Public is currently generating about -0.03 per unit of risk. If you would invest 12,157 in Kasikornbank Public on August 29, 2024 and sell it today you would earn a total of 2,793 from holding Kasikornbank Public or generate 22.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. TPI Polene Public
Performance |
| Timeline |
| Kasikornbank Public |
| TPI Polene Public |
Kasikornbank Public and TPI Polene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and TPI Polene
The main advantage of trading using opposite Kasikornbank Public and TPI Polene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, TPI Polene 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 TPI Polene will offset losses from the drop in TPI Polene's long position.| Kasikornbank Public vs. Thai Energy Storage | Kasikornbank Public vs. Royal Orchid Hotel | Kasikornbank Public vs. Grand Canal Land | Kasikornbank Public vs. PRG Public |
| TPI Polene vs. PTT Public | TPI Polene vs. PTT Exploration and | TPI Polene vs. CP ALL Public | TPI Polene 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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