Correlation Between KGI Securities and MC Group
Can any of the company-specific risk be diversified away by investing in both KGI Securities and MC Group 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 MC Group 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 MC Group Public, you can compare the effects of market volatilities on KGI Securities and MC Group 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 MC Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and MC Group.
Diversification Opportunities for KGI Securities and MC Group
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KGI and MC Group is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and MC Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MC Group 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 MC Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MC Group Public has no effect on the direction of KGI Securities i.e., KGI Securities and MC Group go up and down completely randomly.
Pair Corralation between KGI Securities and MC Group
Assuming the 90 days trading horizon KGI Securities Public is expected to under-perform the MC Group. But the stock apears to be less risky and, when comparing its historical volatility, KGI Securities Public is 2.54 times less risky than MC Group. The stock trades about -0.01 of its potential returns per unit of risk. The MC Group Public is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,016 in MC Group Public on November 27, 2024 and sell it today you would earn a total of 84.00 from holding MC Group Public or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KGI Securities Public vs. MC Group Public
Performance |
| Timeline |
| KGI Securities Public |
| MC Group Public |
KGI Securities and MC Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGI Securities and MC Group
The main advantage of trading using opposite KGI Securities and MC Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, MC Group 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 MC Group will offset losses from the drop in MC Group's long position.| KGI Securities vs. Asia Metal Public | KGI Securities vs. Siri Prime Office | KGI Securities vs. Moshi Moshi Retail | KGI Securities vs. Sriracha Construction Public |
| MC Group vs. Home Product Center | MC Group vs. LPN Development Public | MC Group vs. Mega Lifesciences Public | MC Group vs. Ichitan Group 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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