Correlation Between Kasikornbank Public and Eastern Michigan
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Eastern Michigan 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 Eastern Michigan 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 Eastern Michigan Financial, you can compare the effects of market volatilities on Kasikornbank Public and Eastern Michigan 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 Eastern Michigan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Eastern Michigan.
Diversification Opportunities for Kasikornbank Public and Eastern Michigan
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kasikornbank and Eastern is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public Co and Eastern Michigan Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Michigan Fin 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 Eastern Michigan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Michigan Fin has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Eastern Michigan go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Eastern Michigan
Assuming the 90 days horizon Kasikornbank Public Co is expected to under-perform the Eastern Michigan. In addition to that, Kasikornbank Public is 1.98 times more volatile than Eastern Michigan Financial. It trades about -0.06 of its total potential returns per unit of risk. Eastern Michigan Financial is currently generating about 0.05 per unit of volatility. If you would invest 3,500 in Eastern Michigan Financial on September 1, 2024 and sell it today you would earn a total of 41.00 from holding Eastern Michigan Financial or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public Co vs. Eastern Michigan Financial
Performance |
| Timeline |
| Kasikornbank Public |
| Eastern Michigan Fin |
Kasikornbank Public and Eastern Michigan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Eastern Michigan
The main advantage of trading using opposite Kasikornbank Public and Eastern Michigan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Eastern Michigan 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 Eastern Michigan will offset losses from the drop in Eastern Michigan's long position.| Kasikornbank Public vs. Bank Mandiri Persero | Kasikornbank Public vs. Piraeus Bank SA | Kasikornbank Public vs. Turkiye Garanti Bankasi | Kasikornbank Public vs. Delhi Bank Corp |
| Eastern Michigan vs. Bank Mandiri Persero | Eastern Michigan vs. Piraeus Bank SA | Eastern Michigan vs. Kasikornbank Public Co | Eastern Michigan vs. Turkiye Garanti Bankasi |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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