Correlation Between Coastal Carolina and Kasikornbank Public

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

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

Diversification Opportunities for Coastal Carolina and Kasikornbank Public

-0.03

Correlation Coefficient

Coastal Carolina  Kasikornbank Public

Good diversification

The 3 months correlation between Coastal and Kasikornbank is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Coastal Carolina Bancshares and Kasikornbank Public Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and Coastal Carolina 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 Coastal Carolina Bancshares 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 Coastal Carolina i.e., Coastal Carolina and Kasikornbank Public go up and down completely randomly.

Pair Corralation between Coastal Carolina and Kasikornbank Public

Given the investment horizon of 90 days Coastal Carolina Bancshares is expected to generate 0.17 times more return on investment than Kasikornbank Public. However, Coastal Carolina Bancshares is 5.74 times less risky than Kasikornbank Public. It trades about 0.16 of its potential returns per unit of risk. Kasikornbank Public Co is currently generating about 0.03 per unit of risk. If you would invest  1,080  in Coastal Carolina Bancshares on December 25, 2024 and sell it today you would earn a total of  69.00  from holding Coastal Carolina Bancshares or generate 6.39% return on investment over 90 days.

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

Coastal Carolina Bancshares  vs.  Kasikornbank Public Co

Coastal Carolina Ban

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Coastal Carolina Bancshares are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Coastal Carolina may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Kasikornbank Public

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kasikornbank Public Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Kasikornbank Public may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Coastal Carolina and Kasikornbank Public

The main advantage of trading using opposite Coastal Carolina and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coastal Carolina 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 Coastal Carolina Bancshares 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.