Correlation Between Kings Town and YeaShin International
Can any of the company-specific risk be diversified away by investing in both Kings Town and YeaShin International 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 Kings Town and YeaShin International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kings Town Construction and YeaShin International Development, you can compare the effects of market volatilities on Kings Town and YeaShin International 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 Kings Town with a short position of YeaShin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kings Town and YeaShin International.
Diversification Opportunities for Kings Town and YeaShin International
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kings and YeaShin is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Kings Town Construction and YeaShin International Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeaShin International and Kings Town 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 Kings Town Construction are associated (or correlated) with YeaShin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeaShin International has no effect on the direction of Kings Town i.e., Kings Town and YeaShin International go up and down completely randomly.
Pair Corralation between Kings Town and YeaShin International
Assuming the 90 days trading horizon Kings Town is expected to generate 2.05 times less return on investment than YeaShin International. In addition to that, Kings Town is 2.18 times more volatile than YeaShin International Development. It trades about 0.03 of its total potential returns per unit of risk. YeaShin International Development is currently generating about 0.13 per unit of volatility. If you would invest 3,060 in YeaShin International Development on August 27, 2024 and sell it today you would earn a total of 140.00 from holding YeaShin International Development or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kings Town Construction vs. YeaShin International Developm
Performance |
| Timeline |
| Kings Town Construction |
| YeaShin International |
Kings Town and YeaShin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kings Town and YeaShin International
The main advantage of trading using opposite Kings Town and YeaShin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kings Town position performs unexpectedly, YeaShin International 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 YeaShin International will offset losses from the drop in YeaShin International's long position.| Kings Town vs. Chainqui Construction Development | Kings Town vs. Zinwell | Kings Town vs. Symtek Automation Asia | Kings Town vs. CTCI Corp |
| YeaShin International vs. Run Long Construction | YeaShin International vs. Chong Hong Construction | YeaShin International vs. JSL Construction Development | YeaShin International vs. Delpha Construction Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |