Correlation Between RS Public and Kasikornbank Public

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

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

Diversification Opportunities for RS Public and Kasikornbank Public

-0.78

Correlation Coefficient

RS Public  Kasikornbank Public

Pay attention - limited upside

The 3 months correlation between RS Public and Kasikornbank is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding RS Public and Kasikornbank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public and RS 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 RS 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 RS Public i.e., RS Public and Kasikornbank Public go up and down completely randomly.

Pair Corralation between RS Public and Kasikornbank Public

Assuming the 90 days horizon RS Public is expected to under-perform the Kasikornbank Public. In addition to that, RS Public is 8.28 times more volatile than Kasikornbank Public. It trades about -0.31 of its total potential returns per unit of risk. Kasikornbank Public is currently generating about 0.14 per unit of volatility. If you would invest  15,000  in Kasikornbank Public on October 21, 2024 and sell it today you would earn a total of  1,100  from holding Kasikornbank Public or generate 7.33% return on investment over 90 days.

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

RS Public  vs.  Kasikornbank Public

RS Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RS 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 fundamental drivers remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Kasikornbank Public

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kasikornbank Public are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Kasikornbank Public may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with RS Public and Kasikornbank Public

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

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.