Correlation Between KGI Securities and SCB X
Can any of the company-specific risk be diversified away by investing in both KGI Securities and SCB X 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 SCB X 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 SCB X Public, you can compare the effects of market volatilities on KGI Securities and SCB X 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 SCB X. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and SCB X.
Diversification Opportunities for KGI Securities and SCB X
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KGI and SCB is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and SCB X Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCB X 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 SCB X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCB X Public has no effect on the direction of KGI Securities i.e., KGI Securities and SCB X go up and down completely randomly.
Pair Corralation between KGI Securities and SCB X
Assuming the 90 days trading horizon KGI Securities Public is expected to under-perform the SCB X. But the stock apears to be less risky and, when comparing its historical volatility, KGI Securities Public is 1.07 times less risky than SCB X. The stock trades about -0.26 of its potential returns per unit of risk. The SCB X Public is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 11,350 in SCB X Public on September 13, 2024 and sell it today you would earn a total of 450.00 from holding SCB X Public or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KGI Securities Public vs. SCB X Public
Performance |
| Timeline |
| KGI Securities Public |
| SCB X Public |
KGI Securities and SCB X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KGI Securities and SCB X
The main advantage of trading using opposite KGI Securities and SCB X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, SCB X 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 SCB X will offset losses from the drop in SCB X's long position.| KGI Securities vs. Indara Insurance Public | KGI Securities vs. Asia Medical Agricultural | KGI Securities vs. Charan Insurance Public | KGI Securities vs. Teka Construction PCL |
| SCB X vs. KGI Securities Public | SCB X vs. Lalin Property Public | SCB X vs. Hwa Fong Rubber | SCB X vs. MCS Steel 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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