Correlation Between Kasikornbank Public and Bangkok Bank

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

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

Diversification Opportunities for Kasikornbank Public and Bangkok Bank

0.76

Correlation Coefficient

Kasikornbank Public  Bangkok Bank

Poor diversification

The 3 months correlation between Kasikornbank and Bangkok is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kasikornbank Public and Bangkok Bank PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank PCL 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 Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank PCL has no effect on the direction of Kasikornbank Public i.e., Kasikornbank Public and Bangkok Bank go up and down completely randomly.

Pair Corralation between Kasikornbank Public and Bangkok Bank

Assuming the 90 days trading horizon Kasikornbank Public is expected to generate 2.27 times less return on investment than Bangkok Bank. In addition to that, Kasikornbank Public is 1.05 times more volatile than Bangkok Bank PCL. It trades about 0.06 of its total potential returns per unit of risk. Bangkok Bank PCL is currently generating about 0.13 per unit of volatility. If you would invest  13,550  in Bangkok Bank PCL on April 25, 2025 and sell it today you would earn a total of  1,200  from holding Bangkok Bank PCL or generate 8.86% return on investment over 90 days.

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

Kasikornbank Public  vs.  Bangkok Bank PCL

Kasikornbank Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kasikornbank Public are ranked lower than 4 (%) 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.

Bangkok Bank PCL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bangkok Bank PCL are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, Bangkok Bank may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Kasikornbank Public and Bangkok Bank

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

The idea behind Kasikornbank Public and Bangkok Bank PCL 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.