Correlation Between KC Metalsheet and Kingsmen CMTI
Can any of the company-specific risk be diversified away by investing in both KC Metalsheet and Kingsmen CMTI 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 Kingsmen CMTI 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 Kingsmen CMTI Public, you can compare the effects of market volatilities on KC Metalsheet and Kingsmen CMTI 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 Kingsmen CMTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of KC Metalsheet and Kingsmen CMTI.
Diversification Opportunities for KC Metalsheet and Kingsmen CMTI
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KCM and Kingsmen is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding KC Metalsheet Public and Kingsmen CMTI Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsmen CMTI 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 Kingsmen CMTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsmen CMTI Public has no effect on the direction of KC Metalsheet i.e., KC Metalsheet and Kingsmen CMTI go up and down completely randomly.
Pair Corralation between KC Metalsheet and Kingsmen CMTI
Assuming the 90 days trading horizon KC Metalsheet is expected to generate 1.09 times less return on investment than Kingsmen CMTI. In addition to that, KC Metalsheet is 1.0 times more volatile than Kingsmen CMTI Public. It trades about 0.04 of its total potential returns per unit of risk. Kingsmen CMTI Public is currently generating about 0.04 per unit of volatility. If you would invest 132.00 in Kingsmen CMTI Public on August 29, 2024 and sell it today you would lose (8.00) from holding Kingsmen CMTI Public or give up 6.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KC Metalsheet Public vs. Kingsmen CMTI Public
Performance |
| Timeline |
| KC Metalsheet Public |
| Kingsmen CMTI Public |
KC Metalsheet and Kingsmen CMTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KC Metalsheet and Kingsmen CMTI
The main advantage of trading using opposite KC Metalsheet and Kingsmen CMTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KC Metalsheet position performs unexpectedly, Kingsmen CMTI 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 Kingsmen CMTI will offset losses from the drop in Kingsmen CMTI's long position.| KC Metalsheet vs. Masterkool International Public | KC Metalsheet vs. Kingsmen CMTI Public | KC Metalsheet vs. Hydrotek Public | KC Metalsheet vs. Home Pottery Public |
| Kingsmen CMTI vs. Com7 PCL | Kingsmen CMTI vs. TKS Technologies Public | Kingsmen CMTI vs. Rajthanee Hospital Public | Kingsmen CMTI 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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