Correlation Between Chewathai Public and KC Metalsheet
Can any of the company-specific risk be diversified away by investing in both Chewathai Public and KC Metalsheet 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 Chewathai Public and KC Metalsheet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chewathai Public and KC Metalsheet Public, you can compare the effects of market volatilities on Chewathai Public and KC Metalsheet 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 Chewathai Public with a short position of KC Metalsheet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chewathai Public and KC Metalsheet.
Diversification Opportunities for Chewathai Public and KC Metalsheet
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chewathai and KCM is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Chewathai Public and KC Metalsheet Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KC Metalsheet Public and Chewathai Public 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 Chewathai Public are associated (or correlated) with KC Metalsheet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KC Metalsheet Public has no effect on the direction of Chewathai Public i.e., Chewathai Public and KC Metalsheet go up and down completely randomly.
Pair Corralation between Chewathai Public and KC Metalsheet
Assuming the 90 days trading horizon Chewathai Public is expected to under-perform the KC Metalsheet. In addition to that, Chewathai Public is 2.47 times more volatile than KC Metalsheet Public. It trades about -0.16 of its total potential returns per unit of risk. KC Metalsheet Public is currently generating about -0.36 per unit of volatility. If you would invest 34.00 in KC Metalsheet Public on September 1, 2024 and sell it today you would lose (5.00) from holding KC Metalsheet Public or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chewathai Public vs. KC Metalsheet Public
Performance |
| Timeline |
| Chewathai Public |
| KC Metalsheet Public |
Chewathai Public and KC Metalsheet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chewathai Public and KC Metalsheet
The main advantage of trading using opposite Chewathai Public and KC Metalsheet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chewathai Public position performs unexpectedly, KC Metalsheet 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 KC Metalsheet will offset losses from the drop in KC Metalsheet's long position.| Chewathai Public vs. Cho Thavee Public | Chewathai Public vs. East Coast Furnitech | Chewathai Public vs. Hydrotek Public | Chewathai Public vs. Chularat Hospital Public |
| KC Metalsheet vs. Union Petrochemical Public | KC Metalsheet vs. Ubis Public | KC Metalsheet vs. Unique Mining Services | KC Metalsheet vs. Eureka Design Public |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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