Correlation Between Kerry Express and Triple I
Can any of the company-specific risk be diversified away by investing in both Kerry Express and Triple I 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 Kerry Express and Triple I into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kerry Express Public and Triple i Logistics, you can compare the effects of market volatilities on Kerry Express and Triple I 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 Kerry Express with a short position of Triple I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kerry Express and Triple I.
Diversification Opportunities for Kerry Express and Triple I
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kerry and Triple is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kerry Express Public and Triple i Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple i Logistics and Kerry Express 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 Kerry Express Public are associated (or correlated) with Triple I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple i Logistics has no effect on the direction of Kerry Express i.e., Kerry Express and Triple I go up and down completely randomly.
Pair Corralation between Kerry Express and Triple I
Assuming the 90 days trading horizon Kerry Express Public is expected to under-perform the Triple I. But the stock apears to be less risky and, when comparing its historical volatility, Kerry Express Public is 18.52 times less risky than Triple I. The stock trades about -0.07 of its potential returns per unit of risk. The Triple i Logistics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 968.00 in Triple i Logistics on September 2, 2024 and sell it today you would lose (398.00) from holding Triple i Logistics or give up 41.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kerry Express Public vs. Triple i Logistics
Performance |
| Timeline |
| Kerry Express Public |
| Triple i Logistics |
Kerry Express and Triple I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kerry Express and Triple I
The main advantage of trading using opposite Kerry Express and Triple I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kerry Express position performs unexpectedly, Triple I 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 Triple I will offset losses from the drop in Triple I's long position.The idea behind Kerry Express Public and Triple i Logistics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Triple I vs. Gulf Energy Development | Triple I vs. Energy Absolute Public | Triple I vs. WHA Public | Triple I vs. Bangkok Expressway and |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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