Correlation Between CTCI Corp and Kings Town
Can any of the company-specific risk be diversified away by investing in both CTCI Corp and Kings Town 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 CTCI Corp and Kings Town into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTCI Corp and Kings Town Construction, you can compare the effects of market volatilities on CTCI Corp and Kings Town 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 CTCI Corp with a short position of Kings Town. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and Kings Town.
Diversification Opportunities for CTCI Corp and Kings Town
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CTCI and Kings is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and Kings Town Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kings Town Construction and CTCI Corp 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 CTCI Corp are associated (or correlated) with Kings Town. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kings Town Construction has no effect on the direction of CTCI Corp i.e., CTCI Corp and Kings Town go up and down completely randomly.
Pair Corralation between CTCI Corp and Kings Town
Assuming the 90 days trading horizon CTCI Corp is expected to generate 57.79 times less return on investment than Kings Town. But when comparing it to its historical volatility, CTCI Corp is 2.36 times less risky than Kings Town. It trades about 0.0 of its potential returns per unit of risk. Kings Town Construction is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,445 in Kings Town Construction on August 27, 2024 and sell it today you would earn a total of 4,565 from holding Kings Town Construction or generate 132.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTCI Corp vs. Kings Town Construction
Performance |
| Timeline |
| CTCI Corp |
| Kings Town Construction |
CTCI Corp and Kings Town Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTCI Corp and Kings Town
The main advantage of trading using opposite CTCI Corp and Kings Town positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, Kings Town 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 Kings Town will offset losses from the drop in Kings Town's long position.| CTCI Corp vs. Taiwan Secom Co | CTCI Corp vs. Pou Chen Corp | CTCI Corp vs. Formosa Petrochemical Corp | CTCI Corp vs. Cheng Shin Rubber |
| Kings Town vs. Chainqui Construction Development | Kings Town vs. Zinwell | Kings Town vs. Symtek Automation Asia | Kings Town vs. CTCI Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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