Correlation Between KGI Securities and Pan Asia
Can any of the company-specific risk be diversified away by investing in both KGI Securities and Pan Asia 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 Pan Asia 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 Pan Asia Footwear, you can compare the effects of market volatilities on KGI Securities and Pan Asia 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 Pan Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and Pan Asia.
Diversification Opportunities for KGI Securities and Pan Asia
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KGI and Pan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and Pan Asia Footwear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Asia Footwear 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 Pan Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Asia Footwear has no effect on the direction of KGI Securities i.e., KGI Securities and Pan Asia go up and down completely randomly.
Pair Corralation between KGI Securities and Pan Asia
Assuming the 90 days trading horizon KGI Securities Public is expected to generate 0.32 times more return on investment than Pan Asia. However, KGI Securities Public is 3.17 times less risky than Pan Asia. It trades about -0.23 of its potential returns per unit of risk. Pan Asia Footwear is currently generating about -0.18 per unit of risk. If you would invest 436.00 in KGI Securities Public on September 5, 2024 and sell it today you would lose (14.00) from holding KGI Securities Public or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
KGI Securities Public vs. Pan Asia Footwear
Performance |
| Timeline |
| KGI Securities Public |
| Pan Asia Footwear |
KGI Securities and Pan Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGI Securities and Pan Asia
The main advantage of trading using opposite KGI Securities and Pan Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, Pan Asia 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 Pan Asia will offset losses from the drop in Pan Asia's long position.| KGI Securities vs. Tipco Foods Public | KGI Securities vs. Interlink Telecom Public | KGI Securities vs. The Navakij Insurance | KGI Securities vs. MFC Asset Management |
| Pan Asia vs. Peoples Garment Public | Pan Asia vs. Nawarat Patanakarn Public | Pan Asia vs. KGI Securities Public | Pan Asia vs. Pato Chemical Industry |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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