Correlation Between Crown Asia and Keepers Holdings
Can any of the company-specific risk be diversified away by investing in both Crown Asia and Keepers Holdings 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 Crown Asia and Keepers Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crown Asia Chemicals and Keepers Holdings, you can compare the effects of market volatilities on Crown Asia and Keepers Holdings 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 Crown Asia with a short position of Keepers Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crown Asia and Keepers Holdings.
Diversification Opportunities for Crown Asia and Keepers Holdings
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Crown and Keepers is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Crown Asia Chemicals and Keepers Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keepers Holdings and Crown Asia 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 Crown Asia Chemicals are associated (or correlated) with Keepers Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keepers Holdings has no effect on the direction of Crown Asia i.e., Crown Asia and Keepers Holdings go up and down completely randomly.
Pair Corralation between Crown Asia and Keepers Holdings
Assuming the 90 days trading horizon Crown Asia Chemicals is expected to under-perform the Keepers Holdings. In addition to that, Crown Asia is 1.25 times more volatile than Keepers Holdings. It trades about -0.15 of its total potential returns per unit of risk. Keepers Holdings is currently generating about -0.07 per unit of volatility. If you would invest 209.00 in Keepers Holdings on September 4, 2024 and sell it today you would lose (6.00) from holding Keepers Holdings or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Crown Asia Chemicals vs. Keepers Holdings
Performance |
| Timeline |
| Crown Asia Chemicals |
| Keepers Holdings |
Crown Asia and Keepers Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crown Asia and Keepers Holdings
The main advantage of trading using opposite Crown Asia and Keepers Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crown Asia position performs unexpectedly, Keepers Holdings 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 Keepers Holdings will offset losses from the drop in Keepers Holdings' long position.| Crown Asia vs. GT Capital Holdings | Crown Asia vs. Allhome Corp | Crown Asia vs. Jollibee Foods Corp | Crown Asia vs. LFM Properties Corp |
| Keepers Holdings vs. Manila Mining Corp | Keepers Holdings vs. Converge Information Communications | Keepers Holdings vs. Apex Mining Co | Keepers Holdings vs. Philex Mining 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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