Correlation Between Kasikornbank Public and Postal Savings
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Postal Savings 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 Postal Savings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Postal Savings Bank, you can compare the effects of market volatilities on Kasikornbank Public and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Postal Savings.
Diversification Opportunities for Kasikornbank Public and Postal Savings
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kasikornbank and Postal is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Postal Savings go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Postal Savings
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 0.45 times more return on investment than Postal Savings. However, Kasikornbank Public is 2.22 times less risky than Postal Savings. It trades about 0.23 of its potential returns per unit of risk. Postal Savings Bank is currently generating about 0.06 per unit of risk. If you would invest 388.00 in Kasikornbank Public on September 3, 2024 and sell it today you would earn a total of 16.00 from holding Kasikornbank Public or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. Postal Savings Bank
Performance |
| Timeline |
| Kasikornbank Public |
| Postal Savings Bank |
Kasikornbank Public and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and Postal Savings
The main advantage of trading using opposite Kasikornbank Public and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.| Kasikornbank Public vs. Postal Savings Bank | Kasikornbank Public vs. CAIXABANK UNADR 13 | Kasikornbank Public vs. Superior Plus Corp | Kasikornbank Public vs. NMI Holdings |
| Postal Savings vs. Boyd Gaming | Postal Savings vs. Games Workshop Group | Postal Savings vs. Clean Energy Fuels | Postal Savings vs. International Game Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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