Correlation Between Kang Yong and Globlex Holding
Can any of the company-specific risk be diversified away by investing in both Kang Yong and Globlex Holding 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 Globlex Holding 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 Globlex Holding Management, you can compare the effects of market volatilities on Kang Yong and Globlex Holding 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 Globlex Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kang Yong and Globlex Holding.
Diversification Opportunities for Kang Yong and Globlex Holding
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kang and Globlex is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kang Yong Electric and Globlex Holding Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globlex Holding Mana 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 Globlex Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globlex Holding Mana has no effect on the direction of Kang Yong i.e., Kang Yong and Globlex Holding go up and down completely randomly.
Pair Corralation between Kang Yong and Globlex Holding
Assuming the 90 days trading horizon Kang Yong Electric is expected to generate 0.3 times more return on investment than Globlex Holding. However, Kang Yong Electric is 3.3 times less risky than Globlex Holding. It trades about -0.03 of its potential returns per unit of risk. Globlex Holding Management is currently generating about -0.19 per unit of risk. If you would invest 29,000 in Kang Yong Electric on August 30, 2024 and sell it today you would lose (200.00) from holding Kang Yong Electric or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kang Yong Electric vs. Globlex Holding Management
Performance |
| Timeline |
| Kang Yong Electric |
| Globlex Holding Mana |
Kang Yong and Globlex Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kang Yong and Globlex Holding
The main advantage of trading using opposite Kang Yong and Globlex Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kang Yong position performs unexpectedly, Globlex Holding 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 Globlex Holding will offset losses from the drop in Globlex Holding'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 |
| Globlex Holding vs. Karmarts Public | Globlex Holding vs. Kang Yong Electric | Globlex Holding vs. SCG PACKAGING PCL NVDR | Globlex Holding vs. CK Power 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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