Correlation Between Kingsmen CMTI and Sea Oil
Can any of the company-specific risk be diversified away by investing in both Kingsmen CMTI and Sea Oil 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 Sea Oil 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 Sea Oil Public, you can compare the effects of market volatilities on Kingsmen CMTI and Sea Oil 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 Sea Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsmen CMTI and Sea Oil.
Diversification Opportunities for Kingsmen CMTI and Sea Oil
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kingsmen and Sea is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kingsmen CMTI Public and Sea Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea Oil 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 Sea Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea Oil Public has no effect on the direction of Kingsmen CMTI i.e., Kingsmen CMTI and Sea Oil go up and down completely randomly.
Pair Corralation between Kingsmen CMTI and Sea Oil
Given the investment horizon of 90 days Kingsmen CMTI Public is expected to under-perform the Sea Oil. In addition to that, Kingsmen CMTI is 2.25 times more volatile than Sea Oil Public. It trades about -0.08 of its total potential returns per unit of risk. Sea Oil Public is currently generating about 0.03 per unit of volatility. If you would invest 254.00 in Sea Oil Public on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Sea Oil Public or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kingsmen CMTI Public vs. Sea Oil Public
Performance |
| Timeline |
| Kingsmen CMTI Public |
| Sea Oil Public |
Kingsmen CMTI and Sea Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsmen CMTI and Sea Oil
The main advantage of trading using opposite Kingsmen CMTI and Sea Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsmen CMTI position performs unexpectedly, Sea Oil 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 Sea Oil will offset losses from the drop in Sea Oil's long position.| Kingsmen CMTI vs. Com7 PCL | Kingsmen CMTI vs. SKijchai Enterprise Public | Kingsmen CMTI vs. TKS Technologies Public | Kingsmen CMTI vs. Rajthanee Hospital Public |
| Sea Oil vs. Star Petroleum Refining | Sea Oil vs. Power Solution Technologies | Sea Oil vs. Kingsmen CMTI Public | Sea Oil vs. Project Planning Service |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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