Correlation Between Kasikornbank Public and Asia Plus

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

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

Diversification Opportunities for Kasikornbank Public and Asia Plus

-0.12

Correlation Coefficient

Kasikornbank Public  Asia Plus

Good diversification

The 3 months correlation between Kasikornbank and Asia is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Asia Plus Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Plus Group 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 Asia Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Plus Group has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Asia Plus go up and down completely randomly.

Pair Corralation between Kasikornbank Public and Asia Plus

Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 1.19 times more return on investment than Asia Plus. However, Kasikornbank Public is 1.19 times more volatile than Asia Plus Group. It trades about 0.03 of its potential returns per unit of risk. Asia Plus Group is currently generating about -0.02 per unit of risk. If you would invest  13,621  in Kasikornbank Public on September 24, 2024 and sell it today you would earn a total of  1,829  from holding Kasikornbank Public or generate 13.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.79%
Values	Daily Returns

Kasikornbank Public  vs.  Asia Plus Group

Kasikornbank Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kasikornbank Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Kasikornbank Public is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Asia Plus Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asia Plus Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Kasikornbank Public and Asia Plus

The main advantage of trading using opposite Kasikornbank Public and Asia Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kasikornbank Public position performs unexpectedly, Asia Plus 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 Asia Plus will offset losses from the drop in Asia Plus' long position.

The idea behind Kasikornbank Public and Asia Plus Group 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.