Correlation Between KC Metalsheet and Bangkok Sheet
Can any of the company-specific risk be diversified away by investing in both KC Metalsheet and Bangkok Sheet 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 KC Metalsheet and Bangkok Sheet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KC Metalsheet Public and Bangkok Sheet Metal, you can compare the effects of market volatilities on KC Metalsheet and Bangkok Sheet 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 KC Metalsheet with a short position of Bangkok Sheet. Check out your portfolio center. Please also check ongoing floating volatility patterns of KC Metalsheet and Bangkok Sheet.
Diversification Opportunities for KC Metalsheet and Bangkok Sheet
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KCM and Bangkok is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding KC Metalsheet Public and Bangkok Sheet Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Sheet Metal and KC Metalsheet 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 KC Metalsheet Public are associated (or correlated) with Bangkok Sheet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Sheet Metal has no effect on the direction of KC Metalsheet i.e., KC Metalsheet and Bangkok Sheet go up and down completely randomly.
Pair Corralation between KC Metalsheet and Bangkok Sheet
Assuming the 90 days trading horizon KC Metalsheet is expected to generate 1.02 times less return on investment than Bangkok Sheet. In addition to that, KC Metalsheet is 1.0 times more volatile than Bangkok Sheet Metal. It trades about 0.1 of its total potential returns per unit of risk. Bangkok Sheet Metal is currently generating about 0.1 per unit of volatility. If you would invest 0.00 in Bangkok Sheet Metal on November 2, 2024 and sell it today you would earn a total of 296.00 from holding Bangkok Sheet Metal or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KC Metalsheet Public vs. Bangkok Sheet Metal
Performance |
| Timeline |
| KC Metalsheet Public |
| Bangkok Sheet Metal |
KC Metalsheet and Bangkok Sheet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KC Metalsheet and Bangkok Sheet
The main advantage of trading using opposite KC Metalsheet and Bangkok Sheet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KC Metalsheet position performs unexpectedly, Bangkok Sheet 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 Bangkok Sheet will offset losses from the drop in Bangkok Sheet's long position.| KC Metalsheet vs. Kingsmen CMTI Public | KC Metalsheet vs. Hydrotek Public | KC Metalsheet vs. Home Pottery Public | KC Metalsheet vs. The Erawan Group |
| Bangkok Sheet vs. Kingsmen CMTI Public | Bangkok Sheet vs. Hydrotek Public | Bangkok Sheet vs. Home Pottery Public | Bangkok Sheet vs. The Erawan Group |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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