Correlation Between G Capital and Kingsmen CMTI
Can any of the company-specific risk be diversified away by investing in both G Capital and Kingsmen CMTI 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 G Capital and Kingsmen CMTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Capital Public and Kingsmen CMTI Public, you can compare the effects of market volatilities on G Capital and Kingsmen CMTI 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 G Capital with a short position of Kingsmen CMTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Capital and Kingsmen CMTI.
Diversification Opportunities for G Capital and Kingsmen CMTI
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between GCAP and Kingsmen is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding G Capital Public and Kingsmen CMTI Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsmen CMTI Public and G Capital 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 G Capital Public are associated (or correlated) with Kingsmen CMTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsmen CMTI Public has no effect on the direction of G Capital i.e., G Capital and Kingsmen CMTI go up and down completely randomly.
Pair Corralation between G Capital and Kingsmen CMTI
Assuming the 90 days trading horizon G Capital is expected to generate 1.07 times less return on investment than Kingsmen CMTI. But when comparing it to its historical volatility, G Capital Public is 1.0 times less risky than Kingsmen CMTI. It trades about 0.05 of its potential returns per unit of risk. Kingsmen CMTI Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 104.00 in Kingsmen CMTI Public on August 25, 2024 and sell it today you would earn a total of 16.00 from holding Kingsmen CMTI Public or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
G Capital Public vs. Kingsmen CMTI Public
Performance |
| Timeline |
| G Capital Public |
| Kingsmen CMTI Public |
G Capital and Kingsmen CMTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Capital and Kingsmen CMTI
The main advantage of trading using opposite G Capital and Kingsmen CMTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Capital position performs unexpectedly, Kingsmen CMTI 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 Kingsmen CMTI will offset losses from the drop in Kingsmen CMTI's long position.| G Capital vs. East Coast Furnitech | G Capital vs. Filter Vision Public | G Capital vs. Cho Thavee Public | G Capital vs. Akkhie Prakarn Public |
| Kingsmen CMTI vs. Cho Thavee Public | Kingsmen CMTI vs. G Capital Public | Kingsmen CMTI vs. Thai Ha Public | Kingsmen CMTI vs. Panjawattana Plastic 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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