Correlation Between Kingsmen CMTI and Sanko Diecasting
Can any of the company-specific risk be diversified away by investing in both Kingsmen CMTI and Sanko Diecasting 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 Sanko Diecasting 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 Sanko Diecasting Public, you can compare the effects of market volatilities on Kingsmen CMTI and Sanko Diecasting 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 Sanko Diecasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsmen CMTI and Sanko Diecasting.
Diversification Opportunities for Kingsmen CMTI and Sanko Diecasting
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingsmen and Sanko is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kingsmen CMTI Public and Sanko Diecasting Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanko Diecasting 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 Sanko Diecasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanko Diecasting Public has no effect on the direction of Kingsmen CMTI i.e., Kingsmen CMTI and Sanko Diecasting go up and down completely randomly.
Pair Corralation between Kingsmen CMTI and Sanko Diecasting
Given the investment horizon of 90 days Kingsmen CMTI Public is expected to generate 1.98 times more return on investment than Sanko Diecasting. However, Kingsmen CMTI is 1.98 times more volatile than Sanko Diecasting Public. It trades about 0.07 of its potential returns per unit of risk. Sanko Diecasting Public 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. Sanko Diecasting Public
Performance |
| Timeline |
| Kingsmen CMTI Public |
| Sanko Diecasting Public |
Kingsmen CMTI and Sanko Diecasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsmen CMTI and Sanko Diecasting
The main advantage of trading using opposite Kingsmen CMTI and Sanko Diecasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsmen CMTI position performs unexpectedly, Sanko Diecasting 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 Sanko Diecasting will offset losses from the drop in Sanko Diecasting'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 |
| Sanko Diecasting vs. Sea Oil Public | Sanko Diecasting vs. Rayong Wire Industries | Sanko Diecasting vs. Project Planning Service | Sanko Diecasting vs. Power Solution Technologies |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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