Correlation Between Kee Tai and Anderson Industrial
Can any of the company-specific risk be diversified away by investing in both Kee Tai and Anderson Industrial 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 Kee Tai and Anderson Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kee Tai Properties and Anderson Industrial Corp, you can compare the effects of market volatilities on Kee Tai and Anderson Industrial 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 Kee Tai with a short position of Anderson Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kee Tai and Anderson Industrial.
Diversification Opportunities for Kee Tai and Anderson Industrial
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kee and Anderson is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kee Tai Properties and Anderson Industrial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anderson Industrial Corp and Kee Tai 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 Kee Tai Properties are associated (or correlated) with Anderson Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anderson Industrial Corp has no effect on the direction of Kee Tai i.e., Kee Tai and Anderson Industrial go up and down completely randomly.
Pair Corralation between Kee Tai and Anderson Industrial
Assuming the 90 days trading horizon Kee Tai Properties is expected to generate 0.41 times more return on investment than Anderson Industrial. However, Kee Tai Properties is 2.42 times less risky than Anderson Industrial. It trades about 0.06 of its potential returns per unit of risk. Anderson Industrial Corp is currently generating about -0.33 per unit of risk. If you would invest 1,595 in Kee Tai Properties on September 3, 2024 and sell it today you would earn a total of 20.00 from holding Kee Tai Properties or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kee Tai Properties vs. Anderson Industrial Corp
Performance |
| Timeline |
| Kee Tai Properties |
| Anderson Industrial Corp |
Kee Tai and Anderson Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kee Tai and Anderson Industrial
The main advantage of trading using opposite Kee Tai and Anderson Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kee Tai position performs unexpectedly, Anderson Industrial 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 Anderson Industrial will offset losses from the drop in Anderson Industrial's long position.| Kee Tai vs. Huaku Development Co | Kee Tai vs. Ruentex Development Co | Kee Tai vs. Taiwan Cement Corp | Kee Tai vs. Symtek Automation Asia |
| Anderson Industrial vs. Universal Microelectronics Co | Anderson Industrial vs. AVerMedia Technologies | Anderson Industrial vs. Symtek Automation Asia | Anderson Industrial vs. WiseChip Semiconductor |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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