Correlation Between CKM Building and StShine Optical
Can any of the company-specific risk be diversified away by investing in both CKM Building and StShine Optical 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 CKM Building and StShine Optical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CKM Building Material and StShine Optical Co, you can compare the effects of market volatilities on CKM Building and StShine Optical 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 CKM Building with a short position of StShine Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CKM Building and StShine Optical.
Diversification Opportunities for CKM Building and StShine Optical
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between CKM and StShine is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding CKM Building Material and StShine Optical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StShine Optical and CKM Building 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 CKM Building Material are associated (or correlated) with StShine Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StShine Optical has no effect on the direction of CKM Building i.e., CKM Building and StShine Optical go up and down completely randomly.
Pair Corralation between CKM Building and StShine Optical
Assuming the 90 days trading horizon CKM Building Material is expected to generate 1.73 times more return on investment than StShine Optical. However, CKM Building is 1.73 times more volatile than StShine Optical Co. It trades about 0.09 of its potential returns per unit of risk. StShine Optical Co is currently generating about 0.0 per unit of risk. If you would invest 1,505 in CKM Building Material on August 26, 2024 and sell it today you would earn a total of 1,895 from holding CKM Building Material or generate 125.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CKM Building Material vs. StShine Optical Co
Performance |
| Timeline |
| CKM Building Material |
| StShine Optical |
CKM Building and StShine Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CKM Building and StShine Optical
The main advantage of trading using opposite CKM Building and StShine Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CKM Building position performs unexpectedly, StShine Optical 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 StShine Optical will offset losses from the drop in StShine Optical's long position.| CKM Building vs. Syntek Semiconductor Co | CKM Building vs. Sinopower Semiconductor | CKM Building vs. PChome Online | CKM Building vs. Taiwan Semiconductor Co |
| StShine Optical vs. Solar Applied Materials | StShine Optical vs. FineMat Applied Materials | StShine Optical vs. Arbor Technology | StShine Optical vs. CKM Building Material |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |