Correlation Between Kedge Construction and Progate
Can any of the company-specific risk be diversified away by investing in both Kedge Construction and Progate 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 Kedge Construction and Progate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kedge Construction Co and Progate Group, you can compare the effects of market volatilities on Kedge Construction and Progate 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 Kedge Construction with a short position of Progate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kedge Construction and Progate.
Diversification Opportunities for Kedge Construction and Progate
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kedge and Progate is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kedge Construction Co and Progate Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progate Group and Kedge Construction 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 Kedge Construction Co are associated (or correlated) with Progate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progate Group has no effect on the direction of Kedge Construction i.e., Kedge Construction and Progate go up and down completely randomly.
Pair Corralation between Kedge Construction and Progate
Assuming the 90 days trading horizon Kedge Construction Co is expected to generate 0.43 times more return on investment than Progate. However, Kedge Construction Co is 2.34 times less risky than Progate. It trades about -0.06 of its potential returns per unit of risk. Progate Group is currently generating about -0.14 per unit of risk. If you would invest 7,910 in Kedge Construction Co on August 25, 2024 and sell it today you would lose (370.00) from holding Kedge Construction Co or give up 4.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Kedge Construction Co vs. Progate Group
Performance |
| Timeline |
| Kedge Construction |
| Progate Group |
Kedge Construction and Progate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kedge Construction and Progate
The main advantage of trading using opposite Kedge Construction and Progate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kedge Construction position performs unexpectedly, Progate 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 Progate will offset losses from the drop in Progate's long position.| Kedge Construction vs. Sunny Friend Environmental | Kedge Construction vs. Taiwan Secom Co | Kedge Construction vs. TTET Union Corp | Kedge Construction vs. ECOVE Environment Corp |
| Progate vs. Tai Tung Communication | Progate vs. Kedge Construction Co | Progate vs. Lihtai Construction Enterprise | Progate vs. ReaLy Development 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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