Correlation Between Kasikornbank Public and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public 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 Kasikornbank Public and Bangkok Bank 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 Bangkok Bank PCL, you can compare the effects of market volatilities on Kasikornbank Public 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 Kasikornbank Public with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Bangkok Bank.
Diversification Opportunities for Kasikornbank Public and Bangkok Bank
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kasikornbank and Bangkok is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public Co and Bangkok Bank PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank PCL 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 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 PCL has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Bangkok Bank go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Bangkok Bank
Assuming the 90 days horizon Kasikornbank Public is expected to generate 1.69 times less return on investment than Bangkok Bank. In addition to that, Kasikornbank Public is 1.1 times more volatile than Bangkok Bank PCL. It trades about 0.07 of its total potential returns per unit of risk. Bangkok Bank PCL is currently generating about 0.13 per unit of volatility. If you would invest 2,145 in Bangkok Bank PCL on November 4, 2024 and sell it today you would earn a total of 165.00 from holding Bangkok Bank PCL or generate 7.69% 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 Co vs. Bangkok Bank PCL
Performance |
| Timeline |
| Kasikornbank Public |
| Bangkok Bank PCL |
Kasikornbank Public and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Bangkok Bank
The main advantage of trading using opposite Kasikornbank Public and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public 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.| Kasikornbank Public vs. Turkiye Garanti Bankasi | Kasikornbank Public vs. Hang Seng Bank | Kasikornbank Public vs. PT Bank Rakyat | Kasikornbank Public vs. Delhi Bank Corp |
| Bangkok Bank vs. Partners Bank of | Bangkok Bank vs. BOC Hong Kong | Bangkok Bank vs. China Merchants Bank | Bangkok Bank vs. Bank of the |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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