Correlation Between KGI Securities and Globlex Holding
Can any of the company-specific risk be diversified away by investing in both KGI Securities and Globlex Holding 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 KGI Securities and Globlex Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KGI Securities Public and Globlex Holding Management, you can compare the effects of market volatilities on KGI Securities and Globlex Holding 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 KGI Securities with a short position of Globlex Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and Globlex Holding.
Diversification Opportunities for KGI Securities and Globlex Holding
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between KGI and Globlex is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and Globlex Holding Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globlex Holding Mana and KGI Securities 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 KGI Securities Public are associated (or correlated) with Globlex Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globlex Holding Mana has no effect on the direction of KGI Securities i.e., KGI Securities and Globlex Holding go up and down completely randomly.
Pair Corralation between KGI Securities and Globlex Holding
Assuming the 90 days trading horizon KGI Securities Public is expected to generate 0.43 times more return on investment than Globlex Holding. However, KGI Securities Public is 2.32 times less risky than Globlex Holding. It trades about 0.09 of its potential returns per unit of risk. Globlex Holding Management is currently generating about 0.01 per unit of risk. If you would invest 414.00 in KGI Securities Public on October 22, 2024 and sell it today you would earn a total of 4.00 from holding KGI Securities Public or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KGI Securities Public vs. Globlex Holding Management
Performance |
| Timeline |
| KGI Securities Public |
| Globlex Holding Mana |
KGI Securities and Globlex Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGI Securities and Globlex Holding
The main advantage of trading using opposite KGI Securities and Globlex Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, Globlex Holding 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 Globlex Holding will offset losses from the drop in Globlex Holding's long position.| KGI Securities vs. Firetrade Engineering Public | KGI Securities vs. Asia Medical Agricultural | KGI Securities vs. Bangkok Dusit Medical | KGI Securities vs. Surapon Foods Public |
| Globlex Holding vs. Asia Plus Group | Globlex Holding vs. Eastern Commercial Leasing | Globlex Holding vs. Country Group Holdings | Globlex Holding vs. EMC 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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