Correlation Between Kings Town and Analog Integrations
Can any of the company-specific risk be diversified away by investing in both Kings Town and Analog Integrations 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 Analog Integrations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kings Town Bank and Analog Integrations, you can compare the effects of market volatilities on Kings Town and Analog Integrations 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 Analog Integrations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kings Town and Analog Integrations.
Diversification Opportunities for Kings Town and Analog Integrations
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kings and Analog is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kings Town Bank and Analog Integrations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analog Integrations 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 Bank are associated (or correlated) with Analog Integrations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analog Integrations has no effect on the direction of Kings Town i.e., Kings Town and Analog Integrations go up and down completely randomly.
Pair Corralation between Kings Town and Analog Integrations
Assuming the 90 days trading horizon Kings Town Bank is expected to generate 0.54 times more return on investment than Analog Integrations. However, Kings Town Bank is 1.87 times less risky than Analog Integrations. It trades about 0.03 of its potential returns per unit of risk. Analog Integrations is currently generating about -0.06 per unit of risk. If you would invest 5,010 in Kings Town Bank on October 26, 2024 and sell it today you would earn a total of 90.00 from holding Kings Town Bank or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kings Town Bank vs. Analog Integrations
Performance |
| Timeline |
| Kings Town Bank |
| Analog Integrations |
Kings Town and Analog Integrations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kings Town and Analog Integrations
The main advantage of trading using opposite Kings Town and Analog Integrations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kings Town position performs unexpectedly, Analog Integrations 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 Analog Integrations will offset losses from the drop in Analog Integrations' long position.| Kings Town vs. Taichung Commercial Bank | Kings Town vs. Far Eastern International | Kings Town vs. Taiwan Business Bank | Kings Town vs. Sinopac Financial Holdings |
| Analog Integrations vs. Est Global Apparel | Analog Integrations vs. Newretail Co | Analog Integrations vs. Thinking Electronic Industrial | Analog Integrations vs. Wah Hong Industrial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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