Correlation Between Eastern Media and KMC Kuei
Can any of the company-specific risk be diversified away by investing in both Eastern Media and KMC Kuei 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 Eastern Media and KMC Kuei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastern Media International and KMC Kuei Meng, you can compare the effects of market volatilities on Eastern Media and KMC Kuei 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 Eastern Media with a short position of KMC Kuei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Media and KMC Kuei.
Diversification Opportunities for Eastern Media and KMC Kuei
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastern and KMC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Media International and KMC Kuei Meng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KMC Kuei Meng and Eastern Media 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 Eastern Media International are associated (or correlated) with KMC Kuei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KMC Kuei Meng has no effect on the direction of Eastern Media i.e., Eastern Media and KMC Kuei go up and down completely randomly.
Pair Corralation between Eastern Media and KMC Kuei
If you would invest (100.00) in KMC Kuei Meng on September 14, 2024 and sell it today you would earn a total of 100.00 from holding KMC Kuei Meng or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Eastern Media International vs. KMC Kuei Meng
Performance |
| Timeline |
| Eastern Media Intern |
| KMC Kuei Meng |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eastern Media and KMC Kuei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Media and KMC Kuei
The main advantage of trading using opposite Eastern Media and KMC Kuei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Media position performs unexpectedly, KMC Kuei 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 KMC Kuei will offset losses from the drop in KMC Kuei's long position.| Eastern Media vs. Yang Ming Marine | Eastern Media vs. Wan Hai Lines | Eastern Media vs. U Ming Marine Transport | Eastern Media vs. Taiwan Navigation Co |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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