Correlation Between SCB X and Kasikornbank Public
Can any of the company-specific risk be diversified away by investing in both SCB X 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 SCB X and Kasikornbank Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCB X Public and Kasikornbank Public, you can compare the effects of market volatilities on SCB X 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 SCB X with a short position of Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCB X and Kasikornbank Public.
Diversification Opportunities for SCB X and Kasikornbank Public
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SCB and Kasikornbank is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SCB X Public and Kasikornbank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and SCB X 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 SCB X Public 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 SCB X i.e., SCB X and Kasikornbank Public go up and down completely randomly.
Pair Corralation between SCB X and Kasikornbank Public
Assuming the 90 days trading horizon SCB X is expected to generate 11.57 times less return on investment than Kasikornbank Public. In addition to that, SCB X is 1.04 times more volatile than Kasikornbank Public. It trades about 0.0 of its total potential returns per unit of risk. Kasikornbank Public is currently generating about 0.05 per unit of volatility. If you would invest 14,900 in Kasikornbank Public on August 27, 2024 and sell it today you would earn a total of 100.00 from holding Kasikornbank Public or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCB X Public vs. Kasikornbank Public
Performance |
| Timeline |
| SCB X Public |
| Kasikornbank Public |
SCB X and Kasikornbank Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCB X and Kasikornbank Public
The main advantage of trading using opposite SCB X and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCB X 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.| SCB X vs. Thai Energy Storage | SCB X vs. Royal Orchid Hotel | SCB X vs. Grand Canal Land | SCB X vs. PRG Public |
| Kasikornbank Public vs. SCB X Public | Kasikornbank Public vs. Bangkok Bank Public | Kasikornbank Public vs. PTT Public | Kasikornbank Public vs. CP ALL Public |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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