Correlation Between CK Power and Silicon Craft
Can any of the company-specific risk be diversified away by investing in both CK Power and Silicon Craft 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 CK Power and Silicon Craft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CK Power Public and Silicon Craft Technology, you can compare the effects of market volatilities on CK Power and Silicon Craft 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 CK Power with a short position of Silicon Craft. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Power and Silicon Craft.
Diversification Opportunities for CK Power and Silicon Craft
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CKP-R and Silicon is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding CK Power Public and Silicon Craft Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Craft Technology and CK Power 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 CK Power Public are associated (or correlated) with Silicon Craft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Craft Technology has no effect on the direction of CK Power i.e., CK Power and Silicon Craft go up and down completely randomly.
Pair Corralation between CK Power and Silicon Craft
Assuming the 90 days trading horizon CK Power Public is expected to generate 0.4 times more return on investment than Silicon Craft. However, CK Power Public is 2.48 times less risky than Silicon Craft. It trades about -0.28 of its potential returns per unit of risk. Silicon Craft Technology is currently generating about -0.34 per unit of risk. If you would invest 366.00 in CK Power Public on September 2, 2024 and sell it today you would lose (38.00) from holding CK Power Public or give up 10.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CK Power Public vs. Silicon Craft Technology
Performance |
| Timeline |
| CK Power Public |
| Silicon Craft Technology |
CK Power and Silicon Craft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK Power and Silicon Craft
The main advantage of trading using opposite CK Power and Silicon Craft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK Power position performs unexpectedly, Silicon Craft 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 Silicon Craft will offset losses from the drop in Silicon Craft's long position.| CK Power vs. Central Retail | CK Power vs. Heng Leasing Capital | CK Power vs. Siam Technic Concrete | CK Power vs. Sun Vending Technology |
| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance |