Correlation Between KCE Electronics and Siri Prime
Can any of the company-specific risk be diversified away by investing in both KCE Electronics and Siri Prime 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 Siri Prime 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 Siri Prime Office, you can compare the effects of market volatilities on KCE Electronics and Siri Prime 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 Siri Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of KCE Electronics and Siri Prime.
Diversification Opportunities for KCE Electronics and Siri Prime
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KCE and Siri is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding KCE Electronics Public and Siri Prime Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siri Prime Office 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 Siri Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siri Prime Office has no effect on the direction of KCE Electronics i.e., KCE Electronics and Siri Prime go up and down completely randomly.
Pair Corralation between KCE Electronics and Siri Prime
Assuming the 90 days trading horizon KCE Electronics Public is expected to under-perform the Siri Prime. In addition to that, KCE Electronics is 1.96 times more volatile than Siri Prime Office. It trades about -0.52 of its total potential returns per unit of risk. Siri Prime Office is currently generating about -0.04 per unit of volatility. If you would invest 183.00 in Siri Prime Office on September 1, 2024 and sell it today you would lose (3.00) from holding Siri Prime Office or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KCE Electronics Public vs. Siri Prime Office
Performance |
| Timeline |
| KCE Electronics Public |
| Siri Prime Office |
KCE Electronics and Siri Prime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KCE Electronics and Siri Prime
The main advantage of trading using opposite KCE Electronics and Siri Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KCE Electronics position performs unexpectedly, Siri Prime 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 Siri Prime will offset losses from the drop in Siri Prime'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 |
| Siri Prime vs. Land and Houses | Siri Prime vs. Bangkok Bank Public | Siri Prime vs. Charoen Pokphand Foods |
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 Correlations module to find global opportunities by holding instruments from different markets.
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