Correlation Between Kasikornbank Public and Commercial International
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Commercial International 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 Commercial International 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 Commercial International Bank, you can compare the effects of market volatilities on Kasikornbank Public and Commercial International 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 Commercial International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Commercial International.
Diversification Opportunities for Kasikornbank Public and Commercial International
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kasikornbank and Commercial is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public Co and Commercial International Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial International 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 Commercial International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial International has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Commercial International go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Commercial International
Assuming the 90 days horizon Kasikornbank Public Co is expected to under-perform the Commercial International. In addition to that, Kasikornbank Public is 2.05 times more volatile than Commercial International Bank. It trades about -0.09 of its total potential returns per unit of risk. Commercial International Bank is currently generating about 0.06 per unit of volatility. If you would invest 150.00 in Commercial International Bank on August 29, 2024 and sell it today you would earn a total of 3.00 from holding Commercial International Bank or generate 2.0% 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. Commercial International Bank
Performance |
| Timeline |
| Kasikornbank Public |
| Commercial International |
Kasikornbank Public and Commercial International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Commercial International
The main advantage of trading using opposite Kasikornbank Public and Commercial International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Commercial International 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 Commercial International will offset losses from the drop in Commercial International's long position.The idea behind Kasikornbank Public Co and Commercial International Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Commercial International vs. Bank Mandiri Persero | Commercial International vs. Turkiye Garanti Bankasi | Commercial International vs. BOC Hong Kong | Commercial International vs. Hang Seng Bank |
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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