Correlation Between KINGBOARD CHEMICAL and AXMIN
Can any of the company-specific risk be diversified away by investing in both KINGBOARD CHEMICAL and AXMIN 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 KINGBOARD CHEMICAL and AXMIN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KINGBOARD CHEMICAL and AXMIN Inc, you can compare the effects of market volatilities on KINGBOARD CHEMICAL and AXMIN 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 KINGBOARD CHEMICAL with a short position of AXMIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of KINGBOARD CHEMICAL and AXMIN.
Diversification Opportunities for KINGBOARD CHEMICAL and AXMIN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KINGBOARD and AXMIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KINGBOARD CHEMICAL and AXMIN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXMIN Inc and KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL are associated (or correlated) with AXMIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXMIN Inc has no effect on the direction of KINGBOARD CHEMICAL i.e., KINGBOARD CHEMICAL and AXMIN go up and down completely randomly.
Pair Corralation between KINGBOARD CHEMICAL and AXMIN
Assuming the 90 days trading horizon KINGBOARD CHEMICAL is expected to generate 0.57 times more return on investment than AXMIN. However, KINGBOARD CHEMICAL is 1.75 times less risky than AXMIN. It trades about 0.06 of its potential returns per unit of risk. AXMIN Inc is currently generating about -0.01 per unit of risk. If you would invest 142.00 in KINGBOARD CHEMICAL on September 12, 2024 and sell it today you would earn a total of 94.00 from holding KINGBOARD CHEMICAL or generate 66.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KINGBOARD CHEMICAL vs. AXMIN Inc
Performance |
| Timeline |
| KINGBOARD CHEMICAL |
| AXMIN Inc |
KINGBOARD CHEMICAL and AXMIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KINGBOARD CHEMICAL and AXMIN
The main advantage of trading using opposite KINGBOARD CHEMICAL and AXMIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KINGBOARD CHEMICAL position performs unexpectedly, AXMIN 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 AXMIN will offset losses from the drop in AXMIN's long position.| KINGBOARD CHEMICAL vs. Apple Inc | KINGBOARD CHEMICAL vs. Apple Inc | KINGBOARD CHEMICAL vs. Apple Inc | KINGBOARD CHEMICAL vs. Apple Inc |
| AXMIN vs. KINGBOARD CHEMICAL | AXMIN vs. Magic Software Enterprises | AXMIN vs. Siamgas And Petrochemicals | AXMIN vs. Quaker Chemical |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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