Correlation Between G Shank and Kinik
Can any of the company-specific risk be diversified away by investing in both G Shank and Kinik 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 G Shank and Kinik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Shank Enterprise Co and Kinik Co, you can compare the effects of market volatilities on G Shank and Kinik 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 G Shank with a short position of Kinik. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Shank and Kinik.
Diversification Opportunities for G Shank and Kinik
Modest diversification
The 3 months correlation between 2476 and Kinik is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding G Shank Enterprise Co and Kinik Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinik and G Shank 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 G Shank Enterprise Co are associated (or correlated) with Kinik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinik has no effect on the direction of G Shank i.e., G Shank and Kinik go up and down completely randomly.
Pair Corralation between G Shank and Kinik
Assuming the 90 days trading horizon G Shank is expected to generate 2.01 times less return on investment than Kinik. But when comparing it to its historical volatility, G Shank Enterprise Co is 1.22 times less risky than Kinik. It trades about 0.05 of its potential returns per unit of risk. Kinik Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 17,400 in Kinik Co on September 2, 2024 and sell it today you would earn a total of 12,400 from holding Kinik Co or generate 71.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G Shank Enterprise Co vs. Kinik Co
Performance |
| Timeline |
| G Shank Enterprise |
| Kinik |
G Shank and Kinik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Shank and Kinik
The main advantage of trading using opposite G Shank and Kinik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Shank position performs unexpectedly, Kinik 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 Kinik will offset losses from the drop in Kinik's long position.| G Shank vs. BES Engineering Co | G Shank vs. Continental Holdings Corp | G Shank vs. Kee Tai Properties | G Shank vs. Hung Sheng Construction |
| Kinik vs. Chung Hsin Electric Machinery | Kinik vs. Basso Industry Corp | Kinik vs. Hota Industrial Mfg | Kinik 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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