Correlation Between Global Electrical and Kien Giang
Can any of the company-specific risk be diversified away by investing in both Global Electrical and Kien Giang 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 Global Electrical and Kien Giang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Electrical Technology and Kien Giang Construction, you can compare the effects of market volatilities on Global Electrical and Kien Giang 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 Global Electrical with a short position of Kien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Electrical and Kien Giang.
Diversification Opportunities for Global Electrical and Kien Giang
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Global and Kien is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Global Electrical Technology and Kien Giang Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kien Giang Construction and Global Electrical 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 Global Electrical Technology are associated (or correlated) with Kien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kien Giang Construction has no effect on the direction of Global Electrical i.e., Global Electrical and Kien Giang go up and down completely randomly.
Pair Corralation between Global Electrical and Kien Giang
Assuming the 90 days trading horizon Global Electrical Technology is expected to generate 2.81 times more return on investment than Kien Giang. However, Global Electrical is 2.81 times more volatile than Kien Giang Construction. It trades about -0.02 of its potential returns per unit of risk. Kien Giang Construction is currently generating about -0.18 per unit of risk. If you would invest 2,810,000 in Global Electrical Technology on September 3, 2024 and sell it today you would lose (160,000) from holding Global Electrical Technology or give up 5.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 58.14% |
| Values | Daily Returns |
Global Electrical Technology vs. Kien Giang Construction
Performance |
| Timeline |
| Global Electrical |
| Kien Giang Construction |
Global Electrical and Kien Giang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Electrical and Kien Giang
The main advantage of trading using opposite Global Electrical and Kien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Electrical position performs unexpectedly, Kien Giang 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 Kien Giang will offset losses from the drop in Kien Giang's long position.| Global Electrical vs. IDJ FINANCIAL | Global Electrical vs. PVI Reinsurance Corp | Global Electrical vs. Fecon Mining JSC | Global Electrical vs. Industrial Urban Development |
| Kien Giang vs. FIT INVEST JSC | Kien Giang vs. Damsan JSC | Kien Giang vs. An Phat Plastic | Kien Giang vs. Alphanam ME |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |