Correlation Between Kingsmen CMTI and News Network
Can any of the company-specific risk be diversified away by investing in both Kingsmen CMTI and News Network 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 News Network 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 News Network, you can compare the effects of market volatilities on Kingsmen CMTI and News Network 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 News Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsmen CMTI and News Network.
Diversification Opportunities for Kingsmen CMTI and News Network
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kingsmen and News is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kingsmen CMTI Public and News Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on News Network 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 News Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of News Network has no effect on the direction of Kingsmen CMTI i.e., Kingsmen CMTI and News Network go up and down completely randomly.
Pair Corralation between Kingsmen CMTI and News Network
Given the investment horizon of 90 days Kingsmen CMTI Public is expected to under-perform the News Network. But the stock apears to be less risky and, when comparing its historical volatility, Kingsmen CMTI Public is 6.92 times less risky than News Network. The stock trades about -0.14 of its potential returns per unit of risk. The News Network is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1.00 in News Network on August 25, 2024 and sell it today you would earn a total of 0.00 from holding News Network or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsmen CMTI Public vs. News Network
Performance |
| Timeline |
| Kingsmen CMTI Public |
| News Network |
Kingsmen CMTI and News Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsmen CMTI and News Network
The main advantage of trading using opposite Kingsmen CMTI and News Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsmen CMTI position performs unexpectedly, News Network 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 News Network will offset losses from the drop in News Network's long position.| Kingsmen CMTI vs. Cho Thavee Public | Kingsmen CMTI vs. G Capital Public | Kingsmen CMTI vs. Panjawattana Plastic Public |
| News Network vs. Internet Thailand Public | News Network vs. Millcon Steel Public | News Network vs. Hydrotek Public | News Network vs. E for L |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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