Correlation Between KC Metalsheet and I2 Enterprise
Can any of the company-specific risk be diversified away by investing in both KC Metalsheet and I2 Enterprise 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 I2 Enterprise 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 I2 Enterprise Public, you can compare the effects of market volatilities on KC Metalsheet and I2 Enterprise 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 I2 Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of KC Metalsheet and I2 Enterprise.
Diversification Opportunities for KC Metalsheet and I2 Enterprise
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KCM and I2 Enterprise is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding KC Metalsheet Public and I2 Enterprise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I2 Enterprise 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 I2 Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I2 Enterprise Public has no effect on the direction of KC Metalsheet i.e., KC Metalsheet and I2 Enterprise go up and down completely randomly.
Pair Corralation between KC Metalsheet and I2 Enterprise
Assuming the 90 days trading horizon KC Metalsheet Public is expected to generate 23.51 times more return on investment than I2 Enterprise. However, KC Metalsheet is 23.51 times more volatile than I2 Enterprise Public. It trades about 0.06 of its potential returns per unit of risk. I2 Enterprise Public is currently generating about -0.05 per unit of risk. If you would invest 37.00 in KC Metalsheet Public on September 20, 2024 and sell it today you would lose (9.00) from holding KC Metalsheet Public or give up 24.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.59% |
| Values | Daily Returns |
KC Metalsheet Public vs. I2 Enterprise Public
Performance |
| Timeline |
| KC Metalsheet Public |
| I2 Enterprise Public |
KC Metalsheet and I2 Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KC Metalsheet and I2 Enterprise
The main advantage of trading using opposite KC Metalsheet and I2 Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KC Metalsheet position performs unexpectedly, I2 Enterprise 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 I2 Enterprise will offset losses from the drop in I2 Enterprise'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 |
| I2 Enterprise vs. Sabuy Technology Public | I2 Enterprise vs. Kiattana Transport Public | I2 Enterprise vs. Syntec Construction Public | I2 Enterprise vs. Somboon Advance Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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