Correlation Between CIMB Group and Kasikornbank Public

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

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

Diversification Opportunities for CIMB Group and Kasikornbank Public

0.0

Correlation Coefficient

CIMB Group  Kasikornbank Public

Pay attention - limited upside

The 3 months correlation between CIMB and Kasikornbank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CIMB Group Holdings and Kasikornbank Public Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and CIMB Group 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 CIMB Group Holdings 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 CIMB Group i.e., CIMB Group and Kasikornbank Public go up and down completely randomly.

Pair Corralation between CIMB Group and Kasikornbank Public

If you would invest  1,771  in Kasikornbank Public Co on December 23, 2024 and sell it today you would earn a total of  117.00  from holding Kasikornbank Public Co or generate 6.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CIMB Group Holdings  vs.  Kasikornbank Public Co

CIMB Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days CIMB Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, CIMB Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Kasikornbank Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kasikornbank Public Co are ranked lower than 3 (%) 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 CIMB Group and Kasikornbank Public

The main advantage of trading using opposite CIMB Group and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMB Group 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 CIMB Group Holdings 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.