Correlation Between Kasikornbank Public and Nmb Financial
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Nmb Financial 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 Nmb Financial 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 Nmb Financial Corp, you can compare the effects of market volatilities on Kasikornbank Public and Nmb Financial 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 Nmb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Nmb Financial.
Diversification Opportunities for Kasikornbank Public and Nmb Financial
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kasikornbank and Nmb is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public Co and Nmb Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nmb Financial Corp 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 Nmb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nmb Financial Corp has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Nmb Financial go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Nmb Financial
Assuming the 90 days horizon Kasikornbank Public is expected to generate 2.92 times less return on investment than Nmb Financial. But when comparing it to its historical volatility, Kasikornbank Public Co is 1.51 times less risky than Nmb Financial. It trades about 0.03 of its potential returns per unit of risk. Nmb Financial Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 874.00 in Nmb Financial Corp on September 2, 2024 and sell it today you would earn a total of 526.00 from holding Nmb Financial Corp or generate 60.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.57% |
| Values | Daily Returns |
Kasikornbank Public Co vs. Nmb Financial Corp
Performance |
| Timeline |
| Kasikornbank Public |
| Nmb Financial Corp |
Kasikornbank Public and Nmb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Nmb Financial
The main advantage of trading using opposite Kasikornbank Public and Nmb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Nmb Financial 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 Nmb Financial will offset losses from the drop in Nmb Financial's long position.| Kasikornbank Public vs. Piraeus Bank SA | Kasikornbank Public vs. Turkiye Garanti Bankasi | Kasikornbank Public vs. Uwharrie Capital Corp |
| Nmb Financial vs. Piraeus Bank SA | Nmb Financial vs. Turkiye Garanti Bankasi | Nmb Financial 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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