Correlation Between KC Metalsheet and SCB X
Can any of the company-specific risk be diversified away by investing in both KC Metalsheet and SCB X 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 SCB X 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 SCB X Public, you can compare the effects of market volatilities on KC Metalsheet and SCB X 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 SCB X. Check out your portfolio center. Please also check ongoing floating volatility patterns of KC Metalsheet and SCB X.
Diversification Opportunities for KC Metalsheet and SCB X
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KCM and SCB is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding KC Metalsheet Public and SCB X Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCB X 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 SCB X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCB X Public has no effect on the direction of KC Metalsheet i.e., KC Metalsheet and SCB X go up and down completely randomly.
Pair Corralation between KC Metalsheet and SCB X
Assuming the 90 days trading horizon KC Metalsheet Public is expected to generate 93.2 times more return on investment than SCB X. However, KC Metalsheet is 93.2 times more volatile than SCB X Public. It trades about 0.1 of its potential returns per unit of risk. SCB X Public is currently generating about 0.17 per unit of risk. If you would invest 0.00 in KC Metalsheet Public on November 2, 2024 and sell it today you would earn a total of 22.00 from holding KC Metalsheet Public or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KC Metalsheet Public vs. SCB X Public
Performance |
| Timeline |
| KC Metalsheet Public |
| SCB X Public |
KC Metalsheet and SCB X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KC Metalsheet and SCB X
The main advantage of trading using opposite KC Metalsheet and SCB X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KC Metalsheet position performs unexpectedly, SCB X 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 SCB X will offset losses from the drop in SCB X'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 |
| SCB X vs. Planet Communications Asia | SCB X vs. Hwa Fong Rubber | SCB X vs. Inoue Rubber Public | SCB X vs. ALT Telecom 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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