Correlation Between SCHALTBAU HOLDING and Kasikornbank Public
Can any of the company-specific risk be diversified away by investing in both SCHALTBAU HOLDING 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 SCHALTBAU HOLDING and Kasikornbank Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCHALTBAU HOLDING and Kasikornbank Public, you can compare the effects of market volatilities on SCHALTBAU HOLDING 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 SCHALTBAU HOLDING with a short position of Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCHALTBAU HOLDING and Kasikornbank Public.
Diversification Opportunities for SCHALTBAU HOLDING and Kasikornbank Public
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCHALTBAU and Kasikornbank is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding SCHALTBAU HOLDING and Kasikornbank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and SCHALTBAU HOLDING 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 SCHALTBAU HOLDING 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 SCHALTBAU HOLDING i.e., SCHALTBAU HOLDING and Kasikornbank Public go up and down completely randomly.
Pair Corralation between SCHALTBAU HOLDING and Kasikornbank Public
Assuming the 90 days trading horizon SCHALTBAU HOLDING is expected to generate 15.08 times less return on investment than Kasikornbank Public. But when comparing it to its historical volatility, SCHALTBAU HOLDING is 4.35 times less risky than Kasikornbank Public. It trades about 0.02 of its potential returns per unit of risk. Kasikornbank Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 216.00 in Kasikornbank Public on September 4, 2024 and sell it today you would earn a total of 190.00 from holding Kasikornbank Public or generate 87.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCHALTBAU HOLDING vs. Kasikornbank Public
Performance |
| Timeline |
| SCHALTBAU HOLDING |
| Kasikornbank Public |
SCHALTBAU HOLDING and Kasikornbank Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCHALTBAU HOLDING and Kasikornbank Public
The main advantage of trading using opposite SCHALTBAU HOLDING and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCHALTBAU HOLDING 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.| SCHALTBAU HOLDING vs. Sunny Optical Technology | SCHALTBAU HOLDING vs. AECOM TECHNOLOGY | SCHALTBAU HOLDING vs. Vishay Intertechnology | SCHALTBAU HOLDING vs. Benchmark Electronics |
| Kasikornbank Public vs. NAKED WINES PLC | Kasikornbank Public vs. SHIP HEALTHCARE HLDGINC | Kasikornbank Public vs. Diamondrock Hospitality Co | Kasikornbank Public vs. DiamondRock Hospitality |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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