Correlation Between Klinique Med and Minor International
Can any of the company-specific risk be diversified away by investing in both Klinique Med and Minor International 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 Klinique Med and Minor International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Klinique Med and Minor International Public, you can compare the effects of market volatilities on Klinique Med and Minor International 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 Klinique Med with a short position of Minor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klinique Med and Minor International.
Diversification Opportunities for Klinique Med and Minor International
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Klinique and Minor is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding The Klinique Med and Minor International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minor International and Klinique Med 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 The Klinique Med are associated (or correlated) with Minor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minor International has no effect on the direction of Klinique Med i.e., Klinique Med and Minor International go up and down completely randomly.
Pair Corralation between Klinique Med and Minor International
Assuming the 90 days trading horizon The Klinique Med is expected to under-perform the Minor International. In addition to that, Klinique Med is 1.42 times more volatile than Minor International Public. It trades about -0.08 of its total potential returns per unit of risk. Minor International Public is currently generating about 0.01 per unit of volatility. If you would invest 2,700 in Minor International Public on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Minor International Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Klinique Med vs. Minor International Public
Performance |
| Timeline |
| Klinique Med |
| Minor International |
Klinique Med and Minor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klinique Med and Minor International
The main advantage of trading using opposite Klinique Med and Minor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klinique Med position performs unexpectedly, Minor International 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 Minor International will offset losses from the drop in Minor International's long position.| Klinique Med vs. Minor International Public | Klinique Med vs. Central Plaza Hotel | Klinique Med vs. The Erawan Group | Klinique Med vs. After You Public |
| Minor International vs. CP ALL Public | Minor International vs. Bangkok Dusit Medical | Minor International vs. Airports of Thailand | Minor International vs. Kasikornbank 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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