Correlation Between Kee Tai and Kinik
Can any of the company-specific risk be diversified away by investing in both Kee Tai 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 Kee Tai and Kinik 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 Kinik Co, you can compare the effects of market volatilities on Kee Tai 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 Kee Tai with a short position of Kinik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kee Tai and Kinik.
Diversification Opportunities for Kee Tai and Kinik
Average diversification
The 3 months correlation between Kee and Kinik is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kee Tai Properties and Kinik Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinik 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 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 Kee Tai i.e., Kee Tai and Kinik go up and down completely randomly.
Pair Corralation between Kee Tai and Kinik
Assuming the 90 days trading horizon Kee Tai is expected to generate 3.61 times less return on investment than Kinik. But when comparing it to its historical volatility, Kee Tai Properties is 1.33 times less risky than Kinik. It trades about 0.04 of its potential returns per unit of risk. Kinik Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 11,600 in Kinik Co on August 31, 2024 and sell it today you would earn a total of 17,650 from holding Kinik Co or generate 152.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Kee Tai Properties vs. Kinik Co
Performance |
| Timeline |
| Kee Tai Properties |
| Kinik |
Kee Tai and Kinik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kee Tai and Kinik
The main advantage of trading using opposite Kee Tai and Kinik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kee Tai 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.| Kee Tai vs. Hung Sheng Construction | Kee Tai vs. Chainqui Construction Development | Kee Tai vs. BES Engineering Co | Kee Tai vs. Long Bon International |
| Kinik vs. BES Engineering Co | Kinik vs. Continental Holdings Corp | Kinik vs. Kee Tai Properties | Kinik vs. Hung Sheng Construction |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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