Correlation Between Kingsmen CMTI and Asian Alliance
Can any of the company-specific risk be diversified away by investing in both Kingsmen CMTI and Asian Alliance 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 Kingsmen CMTI and Asian Alliance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingsmen CMTI Public and Asian Alliance International, you can compare the effects of market volatilities on Kingsmen CMTI and Asian Alliance 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 Kingsmen CMTI with a short position of Asian Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsmen CMTI and Asian Alliance.
Diversification Opportunities for Kingsmen CMTI and Asian Alliance
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingsmen and Asian is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kingsmen CMTI Public and Asian Alliance International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Alliance Inter and Kingsmen CMTI 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 Kingsmen CMTI Public are associated (or correlated) with Asian Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Alliance Inter has no effect on the direction of Kingsmen CMTI i.e., Kingsmen CMTI and Asian Alliance go up and down completely randomly.
Pair Corralation between Kingsmen CMTI and Asian Alliance
Given the investment horizon of 90 days Kingsmen CMTI Public is expected to under-perform the Asian Alliance. In addition to that, Kingsmen CMTI is 1.07 times more volatile than Asian Alliance International. It trades about -0.05 of its total potential returns per unit of risk. Asian Alliance International is currently generating about 0.06 per unit of volatility. If you would invest 535.00 in Asian Alliance International on September 12, 2024 and sell it today you would earn a total of 45.00 from holding Asian Alliance International or generate 8.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Kingsmen CMTI Public vs. Asian Alliance International
Performance |
| Timeline |
| Kingsmen CMTI Public |
| Asian Alliance Inter |
Kingsmen CMTI and Asian Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsmen CMTI and Asian Alliance
The main advantage of trading using opposite Kingsmen CMTI and Asian Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsmen CMTI position performs unexpectedly, Asian Alliance 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 Asian Alliance will offset losses from the drop in Asian Alliance's long position.| Kingsmen CMTI vs. Asphere Innovations Public | Kingsmen CMTI vs. Com7 PCL | Kingsmen CMTI vs. TKS Technologies Public | Kingsmen CMTI vs. Rajthanee Hospital Public |
| Asian Alliance vs. i Tail Corp PCL | Asian Alliance vs. North East Rubbers | Asian Alliance vs. Thai Life Insurance | Asian Alliance vs. Exotic Food 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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