Correlation Between Kingsmen CMTI and Project Planning
Can any of the company-specific risk be diversified away by investing in both Kingsmen CMTI and Project Planning 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 Project Planning 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 Project Planning Service, you can compare the effects of market volatilities on Kingsmen CMTI and Project Planning 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 Project Planning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsmen CMTI and Project Planning.
Diversification Opportunities for Kingsmen CMTI and Project Planning
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingsmen and Project is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kingsmen CMTI Public and Project Planning Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Project Planning Service 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 Project Planning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Project Planning Service has no effect on the direction of Kingsmen CMTI i.e., Kingsmen CMTI and Project Planning go up and down completely randomly.
Pair Corralation between Kingsmen CMTI and Project Planning
Given the investment horizon of 90 days Kingsmen CMTI Public is expected to generate 0.56 times more return on investment than Project Planning. However, Kingsmen CMTI Public is 1.79 times less risky than Project Planning. It trades about 0.07 of its potential returns per unit of risk. Project Planning Service is currently generating about -0.11 per unit of risk. If you would invest 114.00 in Kingsmen CMTI Public on November 5, 2024 and sell it today you would earn a total of 3.00 from holding Kingsmen CMTI Public or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsmen CMTI Public vs. Project Planning Service
Performance |
| Timeline |
| Kingsmen CMTI Public |
| Project Planning Service |
Kingsmen CMTI and Project Planning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsmen CMTI and Project Planning
The main advantage of trading using opposite Kingsmen CMTI and Project Planning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsmen CMTI position performs unexpectedly, Project Planning 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 Project Planning will offset losses from the drop in Project Planning'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 |
| Project Planning vs. Power Solution Technologies | Project Planning vs. Kingsmen CMTI Public | Project Planning vs. Panjawattana Plastic Public | Project Planning vs. Cho Thavee 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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