Correlation Between Kung Long and TTET Union
Can any of the company-specific risk be diversified away by investing in both Kung Long and TTET Union 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 Kung Long and TTET Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kung Long Batteries and TTET Union Corp, you can compare the effects of market volatilities on Kung Long and TTET Union 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 Kung Long with a short position of TTET Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kung Long and TTET Union.
Diversification Opportunities for Kung Long and TTET Union
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kung and TTET is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kung Long Batteries and TTET Union Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTET Union Corp and Kung Long 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 Kung Long Batteries are associated (or correlated) with TTET Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTET Union Corp has no effect on the direction of Kung Long i.e., Kung Long and TTET Union go up and down completely randomly.
Pair Corralation between Kung Long and TTET Union
Assuming the 90 days trading horizon Kung Long Batteries is expected to generate 1.34 times more return on investment than TTET Union. However, Kung Long is 1.34 times more volatile than TTET Union Corp. It trades about 0.04 of its potential returns per unit of risk. TTET Union Corp is currently generating about 0.01 per unit of risk. If you would invest 13,750 in Kung Long Batteries on September 3, 2024 and sell it today you would earn a total of 2,050 from holding Kung Long Batteries or generate 14.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kung Long Batteries vs. TTET Union Corp
Performance |
| Timeline |
| Kung Long Batteries |
| TTET Union Corp |
Kung Long and TTET Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kung Long and TTET Union
The main advantage of trading using opposite Kung Long and TTET Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kung Long position performs unexpectedly, TTET Union 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 TTET Union will offset losses from the drop in TTET Union's long position.| Kung Long vs. Universal Microelectronics Co | Kung Long vs. AVerMedia Technologies | Kung Long vs. Symtek Automation Asia | Kung Long vs. WiseChip Semiconductor |
| TTET Union vs. Charoen Pokphand Enterprise | TTET Union vs. Standard Foods Corp | TTET Union vs. Uni President Enterprises Corp | TTET Union vs. Great Wall Enterprise |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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