Correlation Between Coxon Precise and CKM Building
Can any of the company-specific risk be diversified away by investing in both Coxon Precise and CKM Building 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 Coxon Precise and CKM Building into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coxon Precise Industrial and CKM Building Material, you can compare the effects of market volatilities on Coxon Precise and CKM Building 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 Coxon Precise with a short position of CKM Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coxon Precise and CKM Building.
Diversification Opportunities for Coxon Precise and CKM Building
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coxon and CKM is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Coxon Precise Industrial and CKM Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKM Building Material and Coxon Precise 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 Coxon Precise Industrial are associated (or correlated) with CKM Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKM Building Material has no effect on the direction of Coxon Precise i.e., Coxon Precise and CKM Building go up and down completely randomly.
Pair Corralation between Coxon Precise and CKM Building
Assuming the 90 days trading horizon Coxon Precise Industrial is expected to under-perform the CKM Building. In addition to that, Coxon Precise is 1.53 times more volatile than CKM Building Material. It trades about -0.22 of its total potential returns per unit of risk. CKM Building Material is currently generating about 0.18 per unit of volatility. If you would invest 3,430 in CKM Building Material on October 25, 2024 and sell it today you would earn a total of 165.00 from holding CKM Building Material or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coxon Precise Industrial vs. CKM Building Material
Performance |
| Timeline |
| Coxon Precise Industrial |
| CKM Building Material |
Coxon Precise and CKM Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coxon Precise and CKM Building
The main advantage of trading using opposite Coxon Precise and CKM Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coxon Precise position performs unexpectedly, CKM Building 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 CKM Building will offset losses from the drop in CKM Building's long position.| Coxon Precise vs. Lotes Co | Coxon Precise vs. Shin Zu Shing | Coxon Precise vs. TPK Holding Co | Coxon Precise vs. Radiant Opto Electronics Corp |
| CKM Building vs. SuperAlloy Industrial Co, | CKM Building vs. Hi Lai Foods Co | CKM Building vs. Chung Hwa Food | CKM Building vs. Tigerair Taiwan Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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