Correlation Between Kasikornbank Public and BDO Unibank
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and BDO Unibank 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 BDO Unibank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public Co and BDO Unibank ADR, you can compare the effects of market volatilities on Kasikornbank Public and BDO Unibank 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 BDO Unibank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and BDO Unibank.
Diversification Opportunities for Kasikornbank Public and BDO Unibank
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kasikornbank and BDO is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public Co and BDO Unibank ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BDO Unibank ADR 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 Co are associated (or correlated) with BDO Unibank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BDO Unibank ADR has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and BDO Unibank go up and down completely randomly.
Pair Corralation between Kasikornbank Public and BDO Unibank
Assuming the 90 days horizon Kasikornbank Public Co is expected to generate 1.65 times more return on investment than BDO Unibank. However, Kasikornbank Public is 1.65 times more volatile than BDO Unibank ADR. It trades about 0.07 of its potential returns per unit of risk. BDO Unibank ADR is currently generating about -0.05 per unit of risk. If you would invest 1,848 in Kasikornbank Public Co on November 4, 2024 and sell it today you would earn a total of 72.00 from holding Kasikornbank Public Co or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public Co vs. BDO Unibank ADR
Performance |
| Timeline |
| Kasikornbank Public |
| BDO Unibank ADR |
Kasikornbank Public and BDO Unibank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and BDO Unibank
The main advantage of trading using opposite Kasikornbank Public and BDO Unibank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, BDO Unibank 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 BDO Unibank will offset losses from the drop in BDO Unibank's long position.| Kasikornbank Public vs. Turkiye Garanti Bankasi | Kasikornbank Public vs. Hang Seng Bank | Kasikornbank Public vs. PT Bank Rakyat | Kasikornbank Public vs. Delhi Bank Corp |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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