Correlation Between KC Metalsheet and Chewathai Public
Can any of the company-specific risk be diversified away by investing in both KC Metalsheet and Chewathai Public 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 Chewathai Public 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 Chewathai Public, you can compare the effects of market volatilities on KC Metalsheet and Chewathai Public 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 Chewathai Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of KC Metalsheet and Chewathai Public.
Diversification Opportunities for KC Metalsheet and Chewathai Public
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between KCM and Chewathai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding KC Metalsheet Public and Chewathai Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chewathai Public 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 Chewathai Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chewathai Public has no effect on the direction of KC Metalsheet i.e., KC Metalsheet and Chewathai Public go up and down completely randomly.
Pair Corralation between KC Metalsheet and Chewathai Public
Assuming the 90 days trading horizon KC Metalsheet Public is expected to generate 0.42 times more return on investment than Chewathai Public. However, KC Metalsheet Public is 2.39 times less risky than Chewathai Public. It trades about -0.35 of its potential returns per unit of risk. Chewathai Public is currently generating about -0.2 per unit of risk. If you would invest 34.00 in KC Metalsheet Public on August 29, 2024 and sell it today you would lose (5.00) from holding KC Metalsheet Public or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KC Metalsheet Public vs. Chewathai Public
Performance |
| Timeline |
| KC Metalsheet Public |
| Chewathai Public |
KC Metalsheet and Chewathai Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KC Metalsheet and Chewathai Public
The main advantage of trading using opposite KC Metalsheet and Chewathai Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KC Metalsheet position performs unexpectedly, Chewathai Public 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 Chewathai Public will offset losses from the drop in Chewathai Public's long position.| KC Metalsheet vs. Chewathai Public | KC Metalsheet vs. AIRA Factoring Public | KC Metalsheet vs. Cho Thavee Public | KC Metalsheet vs. G Capital Public |
| Chewathai Public vs. Cho Thavee Public | Chewathai Public vs. East Coast Furnitech | Chewathai Public vs. Hydrotek Public | Chewathai Public vs. Chularat Hospital 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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