Correlation Between KCE Electronics and S P
Can any of the company-specific risk be diversified away by investing in both KCE Electronics and S P 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 S P 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 S P V, you can compare the effects of market volatilities on KCE Electronics and S P 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 S P. Check out your portfolio center. Please also check ongoing floating volatility patterns of KCE Electronics and S P.
Diversification Opportunities for KCE Electronics and S P
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KCE and SPVI is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding KCE Electronics Public and S P V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S P V 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 S P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S P V has no effect on the direction of KCE Electronics i.e., KCE Electronics and S P go up and down completely randomly.
Pair Corralation between KCE Electronics and S P
Assuming the 90 days trading horizon KCE Electronics Public is expected to under-perform the S P. In addition to that, KCE Electronics is 1.16 times more volatile than S P V. It trades about -0.49 of its total potential returns per unit of risk. S P V is currently generating about -0.34 per unit of volatility. If you would invest 274.00 in S P V on September 2, 2024 and sell it today you would lose (50.00) from holding S P V or give up 18.25% 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. S P V
Performance |
| Timeline |
| KCE Electronics Public |
| S P V |
KCE Electronics and S P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KCE Electronics and S P
The main advantage of trading using opposite KCE Electronics and S P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KCE Electronics position performs unexpectedly, S P 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 S P will offset losses from the drop in S P's long position.| KCE Electronics vs. AP Public | KCE Electronics vs. Jasmine International Public | KCE Electronics vs. Asia Plus Group | KCE Electronics vs. Bangchak 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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