Correlation Between Twenty Four and Kang Yong
Can any of the company-specific risk be diversified away by investing in both Twenty Four and Kang Yong 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 Twenty Four and Kang Yong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Twenty Four Con Supply and Kang Yong Electric, you can compare the effects of market volatilities on Twenty Four and Kang Yong 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 Twenty Four with a short position of Kang Yong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Twenty Four and Kang Yong.
Diversification Opportunities for Twenty Four and Kang Yong
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Twenty and Kang is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Twenty Four Con Supply and Kang Yong Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kang Yong Electric and Twenty Four 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 Twenty Four Con Supply are associated (or correlated) with Kang Yong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kang Yong Electric has no effect on the direction of Twenty Four i.e., Twenty Four and Kang Yong go up and down completely randomly.
Pair Corralation between Twenty Four and Kang Yong
Assuming the 90 days trading horizon Twenty Four Con Supply is expected to under-perform the Kang Yong. In addition to that, Twenty Four is 7.41 times more volatile than Kang Yong Electric. It trades about -0.3 of its total potential returns per unit of risk. Kang Yong Electric is currently generating about -0.14 per unit of volatility. If you would invest 29,200 in Kang Yong Electric on August 29, 2024 and sell it today you would lose (300.00) from holding Kang Yong Electric or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Twenty Four Con Supply vs. Kang Yong Electric
Performance |
| Timeline |
| Twenty Four Con |
| Kang Yong Electric |
Twenty Four and Kang Yong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Twenty Four and Kang Yong
The main advantage of trading using opposite Twenty Four and Kang Yong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twenty Four position performs unexpectedly, Kang Yong 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 Kang Yong will offset losses from the drop in Kang Yong's long position.| Twenty Four vs. Akkhie Prakarn Public | Twenty Four vs. Absolute Clean Energy | Twenty Four vs. Sabuy Technology Public | Twenty Four vs. Ananda Development Public |
| Kang Yong vs. Hwa Fong Rubber | Kang Yong vs. Hana Microelectronics Public | Kang Yong vs. KGI Securities Public | Kang Yong vs. Haad Thip Public |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |