Correlation Between KGI Securities and Lohakit Metal
Can any of the company-specific risk be diversified away by investing in both KGI Securities and Lohakit Metal 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 Lohakit Metal 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 Lohakit Metal Public, you can compare the effects of market volatilities on KGI Securities and Lohakit Metal 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 Lohakit Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and Lohakit Metal.
Diversification Opportunities for KGI Securities and Lohakit Metal
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KGI and Lohakit is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and Lohakit Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lohakit Metal Public 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 Lohakit Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lohakit Metal Public has no effect on the direction of KGI Securities i.e., KGI Securities and Lohakit Metal go up and down completely randomly.
Pair Corralation between KGI Securities and Lohakit Metal
Assuming the 90 days trading horizon KGI Securities Public is expected to under-perform the Lohakit Metal. But the stock apears to be less risky and, when comparing its historical volatility, KGI Securities Public is 1.18 times less risky than Lohakit Metal. The stock trades about -0.38 of its potential returns per unit of risk. The Lohakit Metal Public is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 376.00 in Lohakit Metal Public on August 30, 2024 and sell it today you would lose (2.00) from holding Lohakit Metal Public or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KGI Securities Public vs. Lohakit Metal Public
Performance |
| Timeline |
| KGI Securities Public |
| Lohakit Metal Public |
KGI Securities and Lohakit Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGI Securities and Lohakit Metal
The main advantage of trading using opposite KGI Securities and Lohakit Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, Lohakit Metal 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 Lohakit Metal will offset losses from the drop in Lohakit Metal's long position.| KGI Securities vs. AAPICO Hitech Public | KGI Securities vs. Namwiwat Medical | KGI Securities vs. Heng Leasing Capital | KGI Securities vs. INET Leasehold REIT |
| Lohakit Metal vs. MCS Steel Public | Lohakit Metal vs. Asia Plus Group | Lohakit Metal vs. Lalin Property Public | Lohakit Metal vs. Lam Soon 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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