Correlation Between Kang Yong and BuilderSmart Public
Can any of the company-specific risk be diversified away by investing in both Kang Yong and BuilderSmart Public 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 BuilderSmart Public 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 BuilderSmart Public, you can compare the effects of market volatilities on Kang Yong and BuilderSmart Public 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 BuilderSmart Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kang Yong and BuilderSmart Public.
Diversification Opportunities for Kang Yong and BuilderSmart Public
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kang and BuilderSmart is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kang Yong Electric and BuilderSmart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BuilderSmart Public 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 BuilderSmart Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BuilderSmart Public has no effect on the direction of Kang Yong i.e., Kang Yong and BuilderSmart Public go up and down completely randomly.
Pair Corralation between Kang Yong and BuilderSmart Public
Assuming the 90 days trading horizon Kang Yong Electric is expected to under-perform the BuilderSmart Public. But the stock apears to be less risky and, when comparing its historical volatility, Kang Yong Electric is 2.3 times less risky than BuilderSmart Public. The stock trades about -0.24 of its potential returns per unit of risk. The BuilderSmart Public is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 181.00 in BuilderSmart Public on September 1, 2024 and sell it today you would lose (2.00) from holding BuilderSmart Public or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kang Yong Electric vs. BuilderSmart Public
Performance |
| Timeline |
| Kang Yong Electric |
| BuilderSmart Public |
Kang Yong and BuilderSmart Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kang Yong and BuilderSmart Public
The main advantage of trading using opposite Kang Yong and BuilderSmart Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kang Yong position performs unexpectedly, BuilderSmart Public 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 BuilderSmart Public will offset losses from the drop in BuilderSmart Public'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 |
| BuilderSmart Public vs. Getabec Public | BuilderSmart Public vs. E for L | BuilderSmart Public vs. Salee Colour Public | BuilderSmart Public vs. CI Group 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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