Correlation Between First Capital and Kasikornbank Public

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

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

Diversification Opportunities for First Capital and Kasikornbank Public

-0.01

Correlation Coefficient

First Capital  Kasikornbank Public

Good diversification

The 3 months correlation between First and Kasikornbank is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding First Capital and Kasikornbank Public Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and First Capital 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 First Capital 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 First Capital i.e., First Capital and Kasikornbank Public go up and down completely randomly.

Pair Corralation between First Capital and Kasikornbank Public

Given the investment horizon of 90 days First Capital is expected to generate 0.89 times more return on investment than Kasikornbank Public. However, First Capital is 1.13 times less risky than Kasikornbank Public. It trades about 0.03 of its potential returns per unit of risk. Kasikornbank Public Co is currently generating about 0.02 per unit of risk. If you would invest  2,517  in First Capital on October 3, 2024 and sell it today you would earn a total of  708.00  from holding First Capital or generate 28.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.31%
Values	Daily Returns

First Capital  vs.  Kasikornbank Public Co

First Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days First Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest fragile performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Kasikornbank Public

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kasikornbank Public Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Kasikornbank Public is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with First Capital and Kasikornbank Public

The main advantage of trading using opposite First Capital and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Capital 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 First Capital 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.