Correlation Between Kasikornbank Public and JAPAN POST
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and JAPAN POST 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 JAPAN POST 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 JAPAN POST BANK, you can compare the effects of market volatilities on Kasikornbank Public and JAPAN POST 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 JAPAN POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and JAPAN POST.
Diversification Opportunities for Kasikornbank Public and JAPAN POST
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kasikornbank and JAPAN is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public Co and JAPAN POST BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAPAN POST BANK 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 JAPAN POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAPAN POST BANK has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and JAPAN POST go up and down completely randomly.
Pair Corralation between Kasikornbank Public and JAPAN POST
Assuming the 90 days horizon Kasikornbank Public is expected to generate 2.75 times less return on investment than JAPAN POST. In addition to that, Kasikornbank Public is 1.28 times more volatile than JAPAN POST BANK. It trades about 0.04 of its total potential returns per unit of risk. JAPAN POST BANK is currently generating about 0.15 per unit of volatility. If you would invest 915.00 in JAPAN POST BANK on September 2, 2024 and sell it today you would earn a total of 66.00 from holding JAPAN POST BANK or generate 7.21% 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. JAPAN POST BANK
Performance |
| Timeline |
| Kasikornbank Public |
| JAPAN POST BANK |
Kasikornbank Public and JAPAN POST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and JAPAN POST
The main advantage of trading using opposite Kasikornbank Public and JAPAN POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, JAPAN POST 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 JAPAN POST will offset losses from the drop in JAPAN POST's long position.| Kasikornbank Public vs. Piraeus Bank SA | Kasikornbank Public vs. Turkiye Garanti Bankasi | Kasikornbank Public vs. Uwharrie Capital Corp |
| JAPAN POST vs. Piraeus Bank SA | JAPAN POST vs. Turkiye Garanti Bankasi | JAPAN POST vs. Uwharrie Capital Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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