Correlation Between Kasikornbank Public and Eternal Energy
Can any of the company-specific risk be diversified away by investing in both Kasikornbank Public and Eternal Energy 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 Kasikornbank Public and Eternal Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kasikornbank Public and Eternal Energy Public, you can compare the effects of market volatilities on Kasikornbank Public and Eternal Energy 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 Kasikornbank Public with a short position of Eternal Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and Eternal Energy.
Diversification Opportunities for Kasikornbank Public and Eternal Energy
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kasikornbank and Eternal is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Eternal Energy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eternal Energy Public and Kasikornbank Public 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 Kasikornbank Public are associated (or correlated) with Eternal Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eternal Energy Public has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Eternal Energy go up and down completely randomly.
Pair Corralation between Kasikornbank Public and Eternal Energy
Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 80.49 times less return on investment than Eternal Energy. But when comparing it to its historical volatility, Kasikornbank Public is 16.89 times less risky than Eternal Energy. It trades about 0.1 of its potential returns per unit of risk. Eternal Energy Public is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Eternal Energy Public on September 24, 2024 and sell it today you would earn a total of 42.00 from holding Eternal Energy Public or generate 221.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kasikornbank Public vs. Eternal Energy Public
Performance |
Timeline |
Kasikornbank Public |
Eternal Energy Public |
Kasikornbank Public and Eternal Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kasikornbank Public and Eternal Energy
The main advantage of trading using opposite Kasikornbank Public and Eternal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Eternal Energy 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 Eternal Energy will offset losses from the drop in Eternal Energy's long position.Kasikornbank Public vs. SCB X Public | Kasikornbank Public vs. Bangkok Bank Public | Kasikornbank Public vs. PTT Public | Kasikornbank Public vs. CP ALL Public |
Eternal Energy vs. PTT Public | Eternal Energy vs. The Siam Cement | Eternal Energy vs. SCB X Public | Eternal Energy vs. Kasikornbank Public |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
CEOs Directory Screen CEOs from public companies around the world |