Correlation Between Kasikornbank Public and SVB T

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

By analyzing existing cross correlation between Kasikornbank Public Co and SVB T Corp, you can compare the effects of market volatilities on Kasikornbank Public and SVB T 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 SVB T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kasikornbank Public and SVB T.

Diversification Opportunities for Kasikornbank Public and SVB T

0.3

Correlation Coefficient

Kasikornbank Public  SVB T

Weak diversification

The 3 months correlation between Kasikornbank and SVB is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public Co and SVB T Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVB T Corp 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 Co are associated (or correlated) with SVB T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVB T Corp has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and SVB T go up and down completely randomly.

Pair Corralation between Kasikornbank Public and SVB T

Assuming the 90 days horizon Kasikornbank Public Co is expected to generate 7.08 times more return on investment than SVB T. However, Kasikornbank Public is 7.08 times more volatile than SVB T Corp. It trades about 0.01 of its potential returns per unit of risk. SVB T Corp is currently generating about 0.05 per unit of risk. If you would invest  1,915  in Kasikornbank Public Co on December 27, 2024 and sell it today you would lose (17.00) from holding Kasikornbank Public Co or give up 0.89% of portfolio value over 90 days.

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

Kasikornbank Public Co  vs.  SVB T Corp

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 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 current stock price disturbance, may contribute to short-term losses for the investors.

SVB T Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SVB T Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental drivers, SVB T is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Kasikornbank Public and SVB T

The main advantage of trading using opposite Kasikornbank Public and SVB T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, SVB T 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 SVB T will offset losses from the drop in SVB T's long position.

The idea behind Kasikornbank Public Co and SVB T Corp 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.