Correlation Between Kasikornbank Public and American Homes
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and American Homes 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 American Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and American Homes 4, you can compare the effects of market volatilities on Kasikornbank Public and American Homes 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 American Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and American Homes.
Diversification Opportunities for Kasikornbank Public and American Homes
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kasikornbank and American is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and American Homes 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Homes 4 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 American Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Homes 4 has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and American Homes go up and down completely randomly.
Pair Corralation between Kasikornbank Public and American Homes
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 2.17 times more return on investment than American Homes. However, Kasikornbank Public is 2.17 times more volatile than American Homes 4. It trades about 0.05 of its potential returns per unit of risk. American Homes 4 is currently generating about 0.04 per unit of risk. If you would invest 224.00 in Kasikornbank Public on September 3, 2024 and sell it today you would earn a total of 180.00 from holding Kasikornbank Public or generate 80.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kasikornbank Public vs. American Homes 4
Performance |
| Timeline |
| Kasikornbank Public |
| American Homes 4 |
Kasikornbank Public and American Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kasikornbank Public and American Homes
The main advantage of trading using opposite Kasikornbank Public and American Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, American Homes 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 American Homes will offset losses from the drop in American Homes' 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 |
| American Homes vs. AvalonBay Communities | American Homes vs. UDR Inc | American Homes vs. INVITATION HOMES DL |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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