Correlation Between NAKED WINES and Kasikornbank Public
Can any of the company-specific risk be diversified away by investing in both NAKED WINES and Kasikornbank Public 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 NAKED WINES and Kasikornbank Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAKED WINES PLC and Kasikornbank Public, you can compare the effects of market volatilities on NAKED WINES and Kasikornbank Public 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 NAKED WINES with a short position of Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAKED WINES and Kasikornbank Public.
Diversification Opportunities for NAKED WINES and Kasikornbank Public
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between NAKED and Kasikornbank is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding NAKED WINES PLC and Kasikornbank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and NAKED WINES 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 NAKED WINES PLC are associated (or correlated) with Kasikornbank Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kasikornbank Public has no effect on the direction of NAKED WINES i.e., NAKED WINES and Kasikornbank Public go up and down completely randomly.
Pair Corralation between NAKED WINES and Kasikornbank Public
Assuming the 90 days horizon NAKED WINES is expected to generate 2.28 times less return on investment than Kasikornbank Public. In addition to that, NAKED WINES is 3.24 times more volatile than Kasikornbank Public. It trades about 0.06 of its total potential returns per unit of risk. Kasikornbank Public is currently generating about 0.47 per unit of volatility. If you would invest 392.00 in Kasikornbank Public on September 12, 2024 and sell it today you would earn a total of 36.00 from holding Kasikornbank Public or generate 9.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAKED WINES PLC vs. Kasikornbank Public
Performance |
| Timeline |
| NAKED WINES PLC |
| Kasikornbank Public |
NAKED WINES and Kasikornbank Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAKED WINES and Kasikornbank Public
The main advantage of trading using opposite NAKED WINES and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAKED WINES position performs unexpectedly, Kasikornbank Public 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 Kasikornbank Public will offset losses from the drop in Kasikornbank Public's long position.| NAKED WINES vs. CHINA TONTINE WINES | NAKED WINES vs. Superior Plus Corp | NAKED WINES vs. SIVERS SEMICONDUCTORS AB | NAKED WINES vs. CHINA HUARONG ENERHD 50 |
| Kasikornbank Public vs. POSBO UNSPADRS20YC1 | Kasikornbank Public vs. Postal Savings Bank | Kasikornbank Public vs. UTD OV BK LOC ADR1 | Kasikornbank Public vs. Superior Plus 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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