Correlation Between Kasikornbank Public and Harbor Bankshares
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Harbor Bankshares 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 Harbor Bankshares 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 Harbor Bankshares, you can compare the effects of market volatilities on Kasikornbank Public and Harbor Bankshares 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 Harbor Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Harbor Bankshares.
Diversification Opportunities for Kasikornbank Public and Harbor Bankshares
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kasikornbank and Harbor is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public Co and Harbor Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Bankshares 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 Harbor Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Bankshares has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Harbor Bankshares go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Harbor Bankshares
Assuming the 90 days horizon Kasikornbank Public is expected to generate 31.42 times less return on investment than Harbor Bankshares. In addition to that, Kasikornbank Public is 1.02 times more volatile than Harbor Bankshares. It trades about 0.01 of its total potential returns per unit of risk. Harbor Bankshares is currently generating about 0.25 per unit of volatility. If you would invest 1,215 in Harbor Bankshares on August 31, 2024 and sell it today you would earn a total of 185.00 from holding Harbor Bankshares or generate 15.23% 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. Harbor Bankshares
Performance |
| Timeline |
| Kasikornbank Public |
| Harbor Bankshares |
Kasikornbank Public and Harbor Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Harbor Bankshares
The main advantage of trading using opposite Kasikornbank Public and Harbor Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Harbor Bankshares 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 Harbor Bankshares will offset losses from the drop in Harbor Bankshares' 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 |
| Harbor Bankshares vs. Bank Mandiri Persero | Harbor Bankshares vs. Piraeus Bank SA | Harbor Bankshares vs. Eurobank Ergasias Services | Harbor Bankshares vs. Kasikornbank Public Co |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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