Correlation Between Zinwell and Kee Tai
Can any of the company-specific risk be diversified away by investing in both Zinwell and Kee Tai 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 Zinwell and Kee Tai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zinwell and Kee Tai Properties, you can compare the effects of market volatilities on Zinwell and Kee Tai 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 Zinwell with a short position of Kee Tai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinwell and Kee Tai.
Diversification Opportunities for Zinwell and Kee Tai
Average diversification
The 3 months correlation between Zinwell and Kee is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Zinwell and Kee Tai Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kee Tai Properties and Zinwell 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 Zinwell are associated (or correlated) with Kee Tai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kee Tai Properties has no effect on the direction of Zinwell i.e., Zinwell and Kee Tai go up and down completely randomly.
Pair Corralation between Zinwell and Kee Tai
Assuming the 90 days trading horizon Zinwell is expected to under-perform the Kee Tai. In addition to that, Zinwell is 1.43 times more volatile than Kee Tai Properties. It trades about -0.06 of its total potential returns per unit of risk. Kee Tai Properties is currently generating about 0.04 per unit of volatility. If you would invest 1,615 in Kee Tai Properties on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Kee Tai Properties or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zinwell vs. Kee Tai Properties
Performance |
| Timeline |
| Zinwell |
| Kee Tai Properties |
Zinwell and Kee Tai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinwell and Kee Tai
The main advantage of trading using opposite Zinwell and Kee Tai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinwell position performs unexpectedly, Kee Tai 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 Kee Tai will offset losses from the drop in Kee Tai's long position.| Zinwell vs. Novatek Microelectronics Corp | Zinwell vs. Sitronix Technology Corp | Zinwell vs. Elan Microelectronics Corp | Zinwell vs. Global Unichip Corp |
| Kee Tai vs. Tainan Spinning Co | Kee Tai vs. Carnival Industrial Corp | Kee Tai vs. Symtek Automation Asia | Kee Tai vs. CTCI Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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