Correlation Between Kingsmen CMTI and Star Petroleum
Can any of the company-specific risk be diversified away by investing in both Kingsmen CMTI and Star Petroleum 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 Star Petroleum 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 Star Petroleum Refining, you can compare the effects of market volatilities on Kingsmen CMTI and Star Petroleum 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 Star Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsmen CMTI and Star Petroleum.
Diversification Opportunities for Kingsmen CMTI and Star Petroleum
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kingsmen and Star is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kingsmen CMTI Public and Star Petroleum Refining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Petroleum Refining 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 Star Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Petroleum Refining has no effect on the direction of Kingsmen CMTI i.e., Kingsmen CMTI and Star Petroleum go up and down completely randomly.
Pair Corralation between Kingsmen CMTI and Star Petroleum
Given the investment horizon of 90 days Kingsmen CMTI Public is expected to generate 0.9 times more return on investment than Star Petroleum. However, Kingsmen CMTI Public is 1.12 times less risky than Star Petroleum. It trades about 0.07 of its potential returns per unit of risk. Star Petroleum Refining is currently generating about -0.34 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsmen CMTI Public vs. Star Petroleum Refining
Performance |
| Timeline |
| Kingsmen CMTI Public |
| Star Petroleum Refining |
Kingsmen CMTI and Star Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsmen CMTI and Star Petroleum
The main advantage of trading using opposite Kingsmen CMTI and Star Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsmen CMTI position performs unexpectedly, Star Petroleum 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 Star Petroleum will offset losses from the drop in Star Petroleum'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 |
| Star Petroleum vs. Thai Oil Public | Star Petroleum vs. IRPC Public | Star Petroleum vs. PTT Global Chemical | Star Petroleum vs. PTT Exploration and |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Correlations Find global opportunities by holding instruments from different markets |