Correlation Between Disney and Kasikornbank Public

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

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

Diversification Opportunities for Disney and Kasikornbank Public

0.2

Correlation Coefficient

Disney  Kasikornbank Public

Modest diversification

The 3 months correlation between Disney and Kasikornbank is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and Kasikornbank Public Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and Disney 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 Walt Disney 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 Disney i.e., Disney and Kasikornbank Public go up and down completely randomly.

Pair Corralation between Disney and Kasikornbank Public

Considering the 90-day investment horizon Walt Disney is expected to under-perform the Kasikornbank Public. But the stock apears to be less risky and, when comparing its historical volatility, Walt Disney is 2.61 times less risky than Kasikornbank Public. The stock trades about -0.14 of its potential returns per unit of risk. The Kasikornbank Public Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,754  in Kasikornbank Public Co on December 31, 2024 and sell it today you would earn a total of  138.00  from holding Kasikornbank Public Co or generate 7.87% return on investment over 90 days.

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

Walt Disney  vs.  Kasikornbank Public Co

Walt Disney

Risk-Adjusted Performance

Very Weak

Over the last 90 days Walt Disney has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's forward indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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 4 (%) 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 May 2025.

Pair Trading with Disney and Kasikornbank Public

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

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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.