Correlation Between Kang Yong and Twenty Four
Can any of the company-specific risk be diversified away by investing in both Kang Yong and Twenty Four 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 Kang Yong and Twenty Four into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kang Yong Electric and Twenty Four Con Supply, you can compare the effects of market volatilities on Kang Yong and Twenty Four 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 Kang Yong with a short position of Twenty Four. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kang Yong and Twenty Four.
Diversification Opportunities for Kang Yong and Twenty Four
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kang and Twenty is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kang Yong Electric and Twenty Four Con Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Twenty Four Con and Kang Yong 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 Kang Yong Electric are associated (or correlated) with Twenty Four. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Twenty Four Con has no effect on the direction of Kang Yong i.e., Kang Yong and Twenty Four go up and down completely randomly.
Pair Corralation between Kang Yong and Twenty Four
Assuming the 90 days trading horizon Kang Yong Electric is expected to generate 0.21 times more return on investment than Twenty Four. However, Kang Yong Electric is 4.75 times less risky than Twenty Four. It trades about 0.12 of its potential returns per unit of risk. Twenty Four Con Supply is currently generating about -0.12 per unit of risk. If you would invest 28,700 in Kang Yong Electric on November 22, 2024 and sell it today you would earn a total of 500.00 from holding Kang Yong Electric or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kang Yong Electric vs. Twenty Four Con Supply
Performance |
| Timeline |
| Kang Yong Electric |
| Twenty Four Con |
Kang Yong and Twenty Four Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kang Yong and Twenty Four
The main advantage of trading using opposite Kang Yong and Twenty Four positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kang Yong position performs unexpectedly, Twenty Four 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 Twenty Four will offset losses from the drop in Twenty Four's long position.| Kang Yong vs. Hwa Fong Rubber | Kang Yong vs. Hana Microelectronics Public | Kang Yong vs. KGI Securities Public | Kang Yong vs. Haad Thip Public |
| Twenty Four vs. Akkhie Prakarn Public | Twenty Four vs. Asian Phytoceuticals Public | Twenty Four vs. Absolute Clean Energy | Twenty Four vs. Sabuy Technology 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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