Correlation Between Kasikornbank Public and MACOM Technology
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and MACOM Technology 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 MACOM Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and MACOM Technology Solutions, you can compare the effects of market volatilities on Kasikornbank Public and MACOM Technology 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 MACOM Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and MACOM Technology.
Diversification Opportunities for Kasikornbank Public and MACOM Technology
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kasikornbank and MACOM is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and MACOM Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MACOM Technology Sol 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 are associated (or correlated) with MACOM Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MACOM Technology Sol has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and MACOM Technology go up and down completely randomly.
Pair Corralation between Kasikornbank Public and MACOM Technology
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 1.06 times more return on investment than MACOM Technology. However, Kasikornbank Public is 1.06 times more volatile than MACOM Technology Solutions. It trades about -0.15 of its potential returns per unit of risk. MACOM Technology Solutions is currently generating about -0.33 per unit of risk. If you would invest 444.00 in Kasikornbank Public on December 1, 2024 and sell it today you would lose (32.00) from holding Kasikornbank Public or give up 7.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. MACOM Technology Solutions
Performance |
| Timeline |
| Kasikornbank Public |
| MACOM Technology Sol |
Kasikornbank Public and MACOM Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and MACOM Technology
The main advantage of trading using opposite Kasikornbank Public and MACOM Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, MACOM Technology 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 MACOM Technology will offset losses from the drop in MACOM Technology's long position.| Kasikornbank Public vs. FAST RETAIL ADR | Kasikornbank Public vs. TOREX SEMICONDUCTOR LTD | Kasikornbank Public vs. Hua Hong Semiconductor | Kasikornbank Public vs. Caseys General Stores |
| MACOM Technology vs. Flutter Entertainment PLC | MACOM Technology vs. Singapore Telecommunications Limited | MACOM Technology vs. Verizon Communications | MACOM Technology vs. Universal Entertainment |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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