Correlation Between CK Power and XSpring Capital
Can any of the company-specific risk be diversified away by investing in both CK Power and XSpring Capital 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 XSpring Capital 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 XSpring Capital Public, you can compare the effects of market volatilities on CK Power and XSpring Capital 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 XSpring Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Power and XSpring Capital.
Diversification Opportunities for CK Power and XSpring Capital
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CKP and XSpring is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding CK Power Public and XSpring Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XSpring Capital Public 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 XSpring Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XSpring Capital Public has no effect on the direction of CK Power i.e., CK Power and XSpring Capital go up and down completely randomly.
Pair Corralation between CK Power and XSpring Capital
Assuming the 90 days trading horizon CK Power Public is expected to under-perform the XSpring Capital. But the stock apears to be less risky and, when comparing its historical volatility, CK Power Public is 2.11 times less risky than XSpring Capital. The stock trades about -0.03 of its potential returns per unit of risk. The XSpring Capital Public is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 150.00 in XSpring Capital Public on September 4, 2024 and sell it today you would lose (57.00) from holding XSpring Capital Public or give up 38.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CK Power Public vs. XSpring Capital Public
Performance |
| Timeline |
| CK Power Public |
| XSpring Capital Public |
CK Power and XSpring Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK Power and XSpring Capital
The main advantage of trading using opposite CK Power and XSpring Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK Power position performs unexpectedly, XSpring Capital 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 XSpring Capital will offset losses from the drop in XSpring Capital's long position.| CK Power vs. Energy Absolute Public | CK Power vs. BCPG Public | CK Power vs. Bangkok Expressway and | CK Power vs. Gulf Energy Development |
| XSpring Capital vs. TMBThanachart Bank Public | XSpring Capital vs. Ngern Tid Lor | XSpring Capital vs. Jay Mart Public | XSpring Capital vs. Sri Trang Gloves |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |