Correlation Between Bank Utica and Kasikornbank Public

Can any of the company-specific risk be diversified away by investing in both Bank Utica 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 Bank Utica and Kasikornbank Public into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bank Utica Ny and Kasikornbank Public Co, you can compare the effects of market volatilities on Bank Utica 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 Bank Utica with a short position of Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Utica and Kasikornbank Public.

Diversification Opportunities for Bank Utica and Kasikornbank Public

-0.44

Correlation Coefficient

Bank Utica  Kasikornbank Public

Very good diversification

The 3 months correlation between Bank and Kasikornbank is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bank Utica Ny and Kasikornbank Public Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and Bank Utica 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 Bank Utica Ny 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 Bank Utica i.e., Bank Utica and Kasikornbank Public go up and down completely randomly.

Pair Corralation between Bank Utica and Kasikornbank Public

Assuming the 90 days horizon Bank Utica Ny is expected to generate 0.53 times more return on investment than Kasikornbank Public. However, Bank Utica Ny is 1.88 times less risky than Kasikornbank Public. It trades about 0.17 of its potential returns per unit of risk. Kasikornbank Public Co is currently generating about 0.0 per unit of risk. If you would invest  41,500  in Bank Utica Ny on September 13, 2024 and sell it today you would earn a total of  9,500  from holding Bank Utica Ny or generate 22.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bank Utica Ny  vs.  Kasikornbank Public Co

Bank Utica Ny

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bank Utica Ny are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Bank Utica disclosed solid returns over the last few months and may actually be approaching a breakup point.

Kasikornbank Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kasikornbank Public Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Kasikornbank Public is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bank Utica and Kasikornbank Public

The main advantage of trading using opposite Bank Utica and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Utica 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.

The idea behind Bank Utica Ny and Kasikornbank Public Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.