Correlation Between Grand Ocean and Kingstate Electronics
Can any of the company-specific risk be diversified away by investing in both Grand Ocean and Kingstate Electronics 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 Grand Ocean and Kingstate Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Ocean Retail and Kingstate Electronics, you can compare the effects of market volatilities on Grand Ocean and Kingstate Electronics 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 Grand Ocean with a short position of Kingstate Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Ocean and Kingstate Electronics.
Diversification Opportunities for Grand Ocean and Kingstate Electronics
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grand and Kingstate is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Grand Ocean Retail and Kingstate Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingstate Electronics and Grand Ocean 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 Grand Ocean Retail are associated (or correlated) with Kingstate Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingstate Electronics has no effect on the direction of Grand Ocean i.e., Grand Ocean and Kingstate Electronics go up and down completely randomly.
Pair Corralation between Grand Ocean and Kingstate Electronics
Assuming the 90 days trading horizon Grand Ocean Retail is expected to generate 3.05 times more return on investment than Kingstate Electronics. However, Grand Ocean is 3.05 times more volatile than Kingstate Electronics. It trades about 0.11 of its potential returns per unit of risk. Kingstate Electronics is currently generating about -0.14 per unit of risk. If you would invest 1,185 in Grand Ocean Retail on September 13, 2024 and sell it today you would earn a total of 85.00 from holding Grand Ocean Retail or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Ocean Retail vs. Kingstate Electronics
Performance |
| Timeline |
| Grand Ocean Retail |
| Kingstate Electronics |
Grand Ocean and Kingstate Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Ocean and Kingstate Electronics
The main advantage of trading using opposite Grand Ocean and Kingstate Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Ocean position performs unexpectedly, Kingstate Electronics 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 Kingstate Electronics will offset losses from the drop in Kingstate Electronics' long position.| Grand Ocean vs. First Steamship Co | Grand Ocean vs. Far Eastern Department | Grand Ocean vs. LongDa Construction Development | Grand Ocean vs. Collins Co |
| Kingstate Electronics vs. Wha Yu Industrial | Kingstate Electronics vs. Microelectronics Technology | Kingstate Electronics vs. Top Union Electronics | Kingstate Electronics vs. Tex Ray Industrial 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |