Correlation Between KCE Electronics and Gulf Energy
Can any of the company-specific risk be diversified away by investing in both KCE Electronics and Gulf Energy 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 KCE Electronics and Gulf Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KCE Electronics Public and Gulf Energy Development, you can compare the effects of market volatilities on KCE Electronics and Gulf Energy 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 KCE Electronics with a short position of Gulf Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of KCE Electronics and Gulf Energy.
Diversification Opportunities for KCE Electronics and Gulf Energy
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KCE and Gulf is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding KCE Electronics Public and Gulf Energy Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gulf Energy Development and KCE Electronics 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 KCE Electronics Public are associated (or correlated) with Gulf Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gulf Energy Development has no effect on the direction of KCE Electronics i.e., KCE Electronics and Gulf Energy go up and down completely randomly.
Pair Corralation between KCE Electronics and Gulf Energy
Assuming the 90 days trading horizon KCE Electronics Public is expected to under-perform the Gulf Energy. In addition to that, KCE Electronics is 1.58 times more volatile than Gulf Energy Development. It trades about -0.04 of its total potential returns per unit of risk. Gulf Energy Development is currently generating about 0.03 per unit of volatility. If you would invest 5,233 in Gulf Energy Development on August 26, 2024 and sell it today you would earn a total of 1,167 from holding Gulf Energy Development or generate 22.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KCE Electronics Public vs. Gulf Energy Development
Performance |
| Timeline |
| KCE Electronics Public |
| Gulf Energy Development |
KCE Electronics and Gulf Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KCE Electronics and Gulf Energy
The main advantage of trading using opposite KCE Electronics and Gulf Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KCE Electronics position performs unexpectedly, Gulf Energy 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 Gulf Energy will offset losses from the drop in Gulf Energy's long position.| KCE Electronics vs. AP Public | KCE Electronics vs. Jasmine International Public | KCE Electronics vs. Asia Plus Group | KCE Electronics vs. Bangkok Aviation Fuel |
| Gulf Energy vs. WHA Public | Gulf Energy vs. TPI Polene Power | Gulf Energy vs. Bangkok Expressway and | Gulf Energy vs. BGrimm Power 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |