Correlation Between AAPICO Hitech and KGI Securities
Can any of the company-specific risk be diversified away by investing in both AAPICO Hitech and KGI Securities 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 AAPICO Hitech and KGI Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAPICO Hitech Public and KGI Securities Public, you can compare the effects of market volatilities on AAPICO Hitech and KGI Securities 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 AAPICO Hitech with a short position of KGI Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAPICO Hitech and KGI Securities.
Diversification Opportunities for AAPICO Hitech and KGI Securities
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AAPICO and KGI is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding AAPICO Hitech Public and KGI Securities Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KGI Securities Public and AAPICO Hitech 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 AAPICO Hitech Public are associated (or correlated) with KGI Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KGI Securities Public has no effect on the direction of AAPICO Hitech i.e., AAPICO Hitech and KGI Securities go up and down completely randomly.
Pair Corralation between AAPICO Hitech and KGI Securities
Assuming the 90 days horizon AAPICO Hitech Public is expected to under-perform the KGI Securities. In addition to that, AAPICO Hitech is 4.68 times more volatile than KGI Securities Public. It trades about -0.19 of its total potential returns per unit of risk. KGI Securities Public is currently generating about -0.29 per unit of volatility. If you would invest 438.00 in KGI Securities Public on August 29, 2024 and sell it today you would lose (16.00) from holding KGI Securities Public or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AAPICO Hitech Public vs. KGI Securities Public
Performance |
| Timeline |
| AAPICO Hitech Public |
| KGI Securities Public |
AAPICO Hitech and KGI Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAPICO Hitech and KGI Securities
The main advantage of trading using opposite AAPICO Hitech and KGI Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAPICO Hitech position performs unexpectedly, KGI Securities 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 KGI Securities will offset losses from the drop in KGI Securities' long position.| AAPICO Hitech vs. Delta Electronics Public | AAPICO Hitech vs. Namwiwat Medical | AAPICO Hitech vs. Silicon Craft Technology | AAPICO Hitech vs. Winnergy Medical Public |
| KGI Securities vs. AAPICO Hitech Public | KGI Securities vs. Namwiwat Medical | KGI Securities vs. Heng Leasing Capital | KGI Securities vs. INET Leasehold REIT |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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