Correlation Between KCE Electronics and Srisawad Power
Can any of the company-specific risk be diversified away by investing in both KCE Electronics and Srisawad Power 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 Srisawad Power 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 Srisawad Power 1979, you can compare the effects of market volatilities on KCE Electronics and Srisawad Power 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 Srisawad Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of KCE Electronics and Srisawad Power.
Diversification Opportunities for KCE Electronics and Srisawad Power
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KCE and Srisawad is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding KCE Electronics Public and Srisawad Power 1979 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srisawad Power 1979 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 Srisawad Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srisawad Power 1979 has no effect on the direction of KCE Electronics i.e., KCE Electronics and Srisawad Power go up and down completely randomly.
Pair Corralation between KCE Electronics and Srisawad Power
Assuming the 90 days trading horizon KCE Electronics Public is expected to under-perform the Srisawad Power. In addition to that, KCE Electronics is 1.52 times more volatile than Srisawad Power 1979. It trades about -0.09 of its total potential returns per unit of risk. Srisawad Power 1979 is currently generating about -0.07 per unit of volatility. If you would invest 3,925 in Srisawad Power 1979 on November 4, 2024 and sell it today you would lose (225.00) from holding Srisawad Power 1979 or give up 5.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KCE Electronics Public vs. Srisawad Power 1979
Performance |
| Timeline |
| KCE Electronics Public |
| Srisawad Power 1979 |
KCE Electronics and Srisawad Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KCE Electronics and Srisawad Power
The main advantage of trading using opposite KCE Electronics and Srisawad Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KCE Electronics position performs unexpectedly, Srisawad Power 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 Srisawad Power will offset losses from the drop in Srisawad Power'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 |
| Srisawad Power vs. Muangthai Capital Public | Srisawad Power vs. Carabao Group Public | Srisawad Power vs. TISCO Financial Group | Srisawad Power vs. Minor International 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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