Correlation Between Karmarts Public and Samart Public
Can any of the company-specific risk be diversified away by investing in both Karmarts Public and Samart Public 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 Karmarts Public and Samart Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karmarts Public and Samart Public, you can compare the effects of market volatilities on Karmarts Public and Samart Public 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 Karmarts Public with a short position of Samart Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karmarts Public and Samart Public.
Diversification Opportunities for Karmarts Public and Samart Public
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Karmarts and Samart is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Karmarts Public and Samart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samart Public and Karmarts Public 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 Karmarts Public are associated (or correlated) with Samart Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samart Public has no effect on the direction of Karmarts Public i.e., Karmarts Public and Samart Public go up and down completely randomly.
Pair Corralation between Karmarts Public and Samart Public
Assuming the 90 days trading horizon Karmarts Public is expected to generate 0.99 times more return on investment than Samart Public. However, Karmarts Public is 1.01 times less risky than Samart Public. It trades about 0.17 of its potential returns per unit of risk. Samart Public is currently generating about 0.03 per unit of risk. If you would invest 1,070 in Karmarts Public on September 14, 2024 and sell it today you would earn a total of 80.00 from holding Karmarts Public or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Karmarts Public vs. Samart Public
Performance |
| Timeline |
| Karmarts Public |
| Samart Public |
Karmarts Public and Samart Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karmarts Public and Samart Public
The main advantage of trading using opposite Karmarts Public and Samart Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karmarts Public position performs unexpectedly, Samart Public 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 Samart Public will offset losses from the drop in Samart Public's long position.| Karmarts Public vs. Beauty Community Public | Karmarts Public vs. Jay Mart Public | Karmarts Public vs. MC Group Public | Karmarts Public vs. Mega Lifesciences Public |
| Samart Public vs. Land and Houses | Samart Public vs. Delta Electronics Public | Samart Public vs. The Siam Cement | Samart Public vs. Bangkok Bank 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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