Correlation Between Kasikornbank Public and TriCo Bancshares
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and TriCo Bancshares 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 TriCo Bancshares 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 TriCo Bancshares, you can compare the effects of market volatilities on Kasikornbank Public and TriCo Bancshares 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 TriCo Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and TriCo Bancshares.
Diversification Opportunities for Kasikornbank Public and TriCo Bancshares
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kasikornbank and TriCo is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public Co and TriCo Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriCo Bancshares 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 TriCo Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriCo Bancshares has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and TriCo Bancshares go up and down completely randomly.
Pair Corralation between Kasikornbank Public and TriCo Bancshares
Assuming the 90 days horizon Kasikornbank Public Co is expected to generate 2.36 times more return on investment than TriCo Bancshares. However, Kasikornbank Public is 2.36 times more volatile than TriCo Bancshares. It trades about 0.07 of its potential returns per unit of risk. TriCo Bancshares is currently generating about 0.06 per unit of risk. If you would invest 1,848 in Kasikornbank Public Co on November 4, 2024 and sell it today you would earn a total of 72.00 from holding Kasikornbank Public Co or generate 3.9% 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. TriCo Bancshares
Performance |
| Timeline |
| Kasikornbank Public |
| TriCo Bancshares |
Kasikornbank Public and TriCo Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and TriCo Bancshares
The main advantage of trading using opposite Kasikornbank Public and TriCo Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, TriCo Bancshares 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 TriCo Bancshares will offset losses from the drop in TriCo Bancshares' 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 |
| TriCo Bancshares vs. First Northwest Bancorp | TriCo Bancshares vs. Community West Bancshares | TriCo Bancshares vs. First Financial Northwest | TriCo Bancshares vs. Great Southern Bancorp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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