Correlation Between Kingsmen CMTI and Multibax Public
Can any of the company-specific risk be diversified away by investing in both Kingsmen CMTI and Multibax Public 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 Multibax Public 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 Multibax Public, you can compare the effects of market volatilities on Kingsmen CMTI and Multibax Public 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 Multibax Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsmen CMTI and Multibax Public.
Diversification Opportunities for Kingsmen CMTI and Multibax Public
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingsmen and Multibax is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kingsmen CMTI Public and Multibax Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multibax Public 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 Multibax Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multibax Public has no effect on the direction of Kingsmen CMTI i.e., Kingsmen CMTI and Multibax Public go up and down completely randomly.
Pair Corralation between Kingsmen CMTI and Multibax Public
Given the investment horizon of 90 days Kingsmen CMTI Public is expected to generate 1.0 times more return on investment than Multibax Public. However, Kingsmen CMTI is 1.0 times more volatile than Multibax Public. It trades about 0.08 of its potential returns per unit of risk. Multibax Public is currently generating about 0.08 per unit of risk. If you would invest 98.00 in Kingsmen CMTI Public on September 2, 2024 and sell it today you would earn a total of 28.00 from holding Kingsmen CMTI Public or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsmen CMTI Public vs. Multibax Public
Performance |
| Timeline |
| Kingsmen CMTI Public |
| Multibax Public |
Kingsmen CMTI and Multibax Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsmen CMTI and Multibax Public
The main advantage of trading using opposite Kingsmen CMTI and Multibax Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsmen CMTI position performs unexpectedly, Multibax Public 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 Multibax Public will offset losses from the drop in Multibax Public's long position.| Kingsmen CMTI vs. Com7 PCL | Kingsmen CMTI vs. TKS Technologies Public | Kingsmen CMTI vs. Rajthanee Hospital Public |
| Multibax Public vs. Kingsmen CMTI Public | Multibax Public vs. Project Planning Service | Multibax Public vs. Power Solution Technologies | Multibax Public vs. Hydrotek 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |