Correlation Between Infraset Public and KCE Electronics
Can any of the company-specific risk be diversified away by investing in both Infraset Public and KCE Electronics 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 Infraset Public and KCE Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infraset Public and KCE Electronics Public, you can compare the effects of market volatilities on Infraset Public and KCE Electronics 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 Infraset Public with a short position of KCE Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infraset Public and KCE Electronics.
Diversification Opportunities for Infraset Public and KCE Electronics
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infraset and KCE is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Infraset Public and KCE Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCE Electronics Public and Infraset Public 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 Infraset Public are associated (or correlated) with KCE Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCE Electronics Public has no effect on the direction of Infraset Public i.e., Infraset Public and KCE Electronics go up and down completely randomly.
Pair Corralation between Infraset Public and KCE Electronics
Assuming the 90 days trading horizon Infraset Public is expected to generate 1.21 times more return on investment than KCE Electronics. However, Infraset Public is 1.21 times more volatile than KCE Electronics Public. It trades about 0.03 of its potential returns per unit of risk. KCE Electronics Public is currently generating about -0.49 per unit of risk. If you would invest 302.00 in Infraset Public on September 2, 2024 and sell it today you would earn a total of 4.00 from holding Infraset Public or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infraset Public vs. KCE Electronics Public
Performance |
| Timeline |
| Infraset Public |
| KCE Electronics Public |
Infraset Public and KCE Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infraset Public and KCE Electronics
The main advantage of trading using opposite Infraset Public and KCE Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infraset Public position performs unexpectedly, KCE Electronics 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 KCE Electronics will offset losses from the drop in KCE Electronics' long position.| Infraset Public vs. Dohome Public | Infraset Public vs. Beryl 8 Plus | Infraset Public vs. Forth Public | Infraset Public vs. Delta Electronics Public |
| KCE Electronics vs. AP Public | KCE Electronics vs. Jasmine International Public | KCE Electronics vs. Asia Plus Group | KCE Electronics vs. Bangchak 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |