Correlation Between Kingsmen CMTI and Com7 PCL
Can any of the company-specific risk be diversified away by investing in both Kingsmen CMTI and Com7 PCL 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 Com7 PCL 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 Com7 PCL, you can compare the effects of market volatilities on Kingsmen CMTI and Com7 PCL 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 Com7 PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsmen CMTI and Com7 PCL.
Diversification Opportunities for Kingsmen CMTI and Com7 PCL
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingsmen and Com7 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kingsmen CMTI Public and Com7 PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Com7 PCL 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 Com7 PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Com7 PCL has no effect on the direction of Kingsmen CMTI i.e., Kingsmen CMTI and Com7 PCL go up and down completely randomly.
Pair Corralation between Kingsmen CMTI and Com7 PCL
Given the investment horizon of 90 days Kingsmen CMTI Public is expected to generate 1.64 times more return on investment than Com7 PCL. However, Kingsmen CMTI is 1.64 times more volatile than Com7 PCL. It trades about 0.25 of its potential returns per unit of risk. Com7 PCL is currently generating about -0.1 per unit of risk. If you would invest 118.00 in Kingsmen CMTI Public on December 1, 2024 and sell it today you would earn a total of 16.00 from holding Kingsmen CMTI Public or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsmen CMTI Public vs. Com7 PCL
Performance |
| Timeline |
| Kingsmen CMTI Public |
| Com7 PCL |
Kingsmen CMTI and Com7 PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsmen CMTI and Com7 PCL
The main advantage of trading using opposite Kingsmen CMTI and Com7 PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsmen CMTI position performs unexpectedly, Com7 PCL 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 Com7 PCL will offset losses from the drop in Com7 PCL's long position.| Kingsmen CMTI vs. Cho Thavee Public | Kingsmen CMTI vs. G Capital Public | Kingsmen CMTI vs. Thai Ha Public | Kingsmen CMTI vs. Panjawattana Plastic Public |
| Com7 PCL vs. CP ALL Public | Com7 PCL vs. Home Product Center | Com7 PCL vs. Minor International Public | Com7 PCL vs. Bangkok Dusit Medical |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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