Correlation Between KCE Electronics and JD Food
Can any of the company-specific risk be diversified away by investing in both KCE Electronics and JD Food 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 JD Food 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 JD Food PCL, you can compare the effects of market volatilities on KCE Electronics and JD Food 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 JD Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of KCE Electronics and JD Food.
Diversification Opportunities for KCE Electronics and JD Food
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KCE and JDF is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding KCE Electronics Public and JD Food PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Food PCL 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 JD Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Food PCL has no effect on the direction of KCE Electronics i.e., KCE Electronics and JD Food go up and down completely randomly.
Pair Corralation between KCE Electronics and JD Food
Assuming the 90 days trading horizon KCE Electronics Public is expected to under-perform the JD Food. In addition to that, KCE Electronics is 1.01 times more volatile than JD Food PCL. It trades about -0.13 of its total potential returns per unit of risk. JD Food PCL is currently generating about 0.01 per unit of volatility. If you would invest 203.00 in JD Food PCL on September 1, 2024 and sell it today you would earn a total of 1.00 from holding JD Food PCL or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KCE Electronics Public vs. JD Food PCL
Performance |
| Timeline |
| KCE Electronics Public |
| JD Food PCL |
KCE Electronics and JD Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KCE Electronics and JD Food
The main advantage of trading using opposite KCE Electronics and JD Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KCE Electronics position performs unexpectedly, JD Food 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 JD Food will offset losses from the drop in JD Food's long position.| KCE Electronics vs. Hana Microelectronics Public | KCE Electronics vs. Kasikornbank Public | KCE Electronics vs. Land and Houses | KCE Electronics vs. Indorama Ventures PCL |
| JD Food vs. Mega Lifesciences Public | JD Food vs. Com7 PCL | JD Food vs. Thai Union Group | JD Food vs. Jay Mart 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |