Correlation Between Kasikornbank Public and Lewis Clark
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Lewis Clark 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 Lewis Clark 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 Lewis Clark Bancorp, you can compare the effects of market volatilities on Kasikornbank Public and Lewis Clark 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 Lewis Clark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Lewis Clark.
Diversification Opportunities for Kasikornbank Public and Lewis Clark
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kasikornbank and Lewis is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public Co and Lewis Clark Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lewis Clark Bancorp 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 Lewis Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lewis Clark Bancorp has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Lewis Clark go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Lewis Clark
Assuming the 90 days horizon Kasikornbank Public Co is expected to generate 0.96 times more return on investment than Lewis Clark. However, Kasikornbank Public Co is 1.04 times less risky than Lewis Clark. It trades about 0.03 of its potential returns per unit of risk. Lewis Clark Bancorp is currently generating about 0.0 per unit of risk. If you would invest 1,487 in Kasikornbank Public Co on September 2, 2024 and sell it today you would earn a total of 311.00 from holding Kasikornbank Public Co or generate 20.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.81% |
| Values | Daily Returns |
Kasikornbank Public Co vs. Lewis Clark Bancorp
Performance |
| Timeline |
| Kasikornbank Public |
| Lewis Clark Bancorp |
Kasikornbank Public and Lewis Clark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Lewis Clark
The main advantage of trading using opposite Kasikornbank Public and Lewis Clark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Lewis Clark 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 Lewis Clark will offset losses from the drop in Lewis Clark's long position.| Kasikornbank Public vs. Piraeus Bank SA | Kasikornbank Public vs. Turkiye Garanti Bankasi | Kasikornbank Public vs. Uwharrie Capital Corp |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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