Correlation Between KEYEASTCoLtd and Winix
Can any of the company-specific risk be diversified away by investing in both KEYEASTCoLtd and Winix 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 KEYEASTCoLtd and Winix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KEYEASTCoLtd and Winix Inc, you can compare the effects of market volatilities on KEYEASTCoLtd and Winix 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 KEYEASTCoLtd with a short position of Winix. Check out your portfolio center. Please also check ongoing floating volatility patterns of KEYEASTCoLtd and Winix.
Diversification Opportunities for KEYEASTCoLtd and Winix
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KEYEASTCoLtd and Winix is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding KEYEASTCoLtd and Winix Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winix Inc and KEYEASTCoLtd 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 KEYEASTCoLtd are associated (or correlated) with Winix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winix Inc has no effect on the direction of KEYEASTCoLtd i.e., KEYEASTCoLtd and Winix go up and down completely randomly.
Pair Corralation between KEYEASTCoLtd and Winix
Assuming the 90 days trading horizon KEYEASTCoLtd is expected to generate 1.09 times more return on investment than Winix. However, KEYEASTCoLtd is 1.09 times more volatile than Winix Inc. It trades about -0.02 of its potential returns per unit of risk. Winix Inc is currently generating about -0.43 per unit of risk. If you would invest 435,500 in KEYEASTCoLtd on August 25, 2024 and sell it today you would lose (7,000) from holding KEYEASTCoLtd or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KEYEASTCoLtd vs. Winix Inc
Performance |
| Timeline |
| KEYEASTCoLtd |
| Winix Inc |
KEYEASTCoLtd and Winix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KEYEASTCoLtd and Winix
The main advantage of trading using opposite KEYEASTCoLtd and Winix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KEYEASTCoLtd position performs unexpectedly, Winix 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 Winix will offset losses from the drop in Winix's long position.| KEYEASTCoLtd vs. Netmarble Games Corp | KEYEASTCoLtd vs. QUALITAS SEMICONDUCTOR LTD | KEYEASTCoLtd vs. Jeju Semiconductor Corp | KEYEASTCoLtd vs. Cube Entertainment |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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