Correlation Between Indara Insurance and Kasikornbank Public

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

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

Diversification Opportunities for Indara Insurance and Kasikornbank Public

-0.52

Correlation Coefficient

Indara Insurance  Kasikornbank Public

Excellent diversification

The 3 months correlation between Indara and Kasikornbank is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Indara Insurance Public and Kasikornbank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and Indara Insurance 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 Indara Insurance Public 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 Indara Insurance i.e., Indara Insurance and Kasikornbank Public go up and down completely randomly.

Pair Corralation between Indara Insurance and Kasikornbank Public

Assuming the 90 days trading horizon Indara Insurance is expected to generate 4.46 times less return on investment than Kasikornbank Public. In addition to that, Indara Insurance is 2.22 times more volatile than Kasikornbank Public. It trades about 0.01 of its total potential returns per unit of risk. Kasikornbank Public is currently generating about 0.1 per unit of volatility. If you would invest  15,650  in Kasikornbank Public on October 13, 2024 and sell it today you would earn a total of  300.00  from holding Kasikornbank Public or generate 1.92% return on investment over 90 days.

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

Indara Insurance Public  vs.  Kasikornbank Public

Indara Insurance Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Indara Insurance Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Kasikornbank Public

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kasikornbank Public are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Kasikornbank Public is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Indara Insurance and Kasikornbank Public

The main advantage of trading using opposite Indara Insurance and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indara Insurance 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 Indara Insurance Public and Kasikornbank Public 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.