Correlation Between Kasikornbank Public and Broadway Financial
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Broadway Financial 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 Broadway Financial 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 Broadway Financial, you can compare the effects of market volatilities on Kasikornbank Public and Broadway Financial 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 Broadway Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Broadway Financial.
Diversification Opportunities for Kasikornbank Public and Broadway Financial
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kasikornbank and Broadway is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public Co and Broadway Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadway Financial 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 Broadway Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadway Financial has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Broadway Financial go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Broadway Financial
Assuming the 90 days horizon Kasikornbank Public is expected to generate 1.77 times less return on investment than Broadway Financial. But when comparing it to its historical volatility, Kasikornbank Public Co is 1.29 times less risky than Broadway Financial. It trades about 0.07 of its potential returns per unit of risk. Broadway Financial is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 719.00 in Broadway Financial on November 4, 2024 and sell it today you would earn a total of 51.00 from holding Broadway Financial or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public Co vs. Broadway Financial
Performance |
| Timeline |
| Kasikornbank Public |
| Broadway Financial |
Kasikornbank Public and Broadway Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Broadway Financial
The main advantage of trading using opposite Kasikornbank Public and Broadway Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Broadway Financial 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 Broadway Financial will offset losses from the drop in Broadway Financial'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 |
| Broadway Financial vs. Community West Bancshares | Broadway Financial vs. First Northwest Bancorp | Broadway Financial vs. First Financial Northwest | Broadway Financial vs. First Capital |
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 CEOs Directory module to screen CEOs from public companies around the world.
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