Correlation Between KGI Securities and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both KGI Securities and Bangkok Bank 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 KGI Securities and Bangkok Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KGI Securities Public and Bangkok Bank Public, you can compare the effects of market volatilities on KGI Securities and Bangkok Bank 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 KGI Securities with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and Bangkok Bank.
Diversification Opportunities for KGI Securities and Bangkok Bank
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KGI and Bangkok is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and Bangkok Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank Public and KGI Securities 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 KGI Securities Public are associated (or correlated) with Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank Public has no effect on the direction of KGI Securities i.e., KGI Securities and Bangkok Bank go up and down completely randomly.
Pair Corralation between KGI Securities and Bangkok Bank
Assuming the 90 days trading horizon KGI Securities Public is expected to under-perform the Bangkok Bank. But the stock apears to be less risky and, when comparing its historical volatility, KGI Securities Public is 1.23 times less risky than Bangkok Bank. The stock trades about 0.0 of its potential returns per unit of risk. The Bangkok Bank Public is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 13,013 in Bangkok Bank Public on September 19, 2024 and sell it today you would earn a total of 1,737 from holding Bangkok Bank Public or generate 13.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
KGI Securities Public vs. Bangkok Bank Public
Performance |
Timeline |
KGI Securities Public |
Bangkok Bank Public |
KGI Securities and Bangkok Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KGI Securities and Bangkok Bank
The main advantage of trading using opposite KGI Securities and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, Bangkok Bank 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 Bangkok Bank will offset losses from the drop in Bangkok Bank's long position.KGI Securities vs. Lalin Property Public | KGI Securities vs. Hwa Fong Rubber | KGI Securities vs. MCS Steel Public |
Bangkok Bank vs. Lalin Property Public | Bangkok Bank vs. Hwa Fong Rubber | Bangkok Bank vs. MCS Steel 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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