Correlation Between Kang Yong and Getabec Public
Can any of the company-specific risk be diversified away by investing in both Kang Yong and Getabec 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 Getabec 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 Getabec Public, you can compare the effects of market volatilities on Kang Yong and Getabec 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 Getabec Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kang Yong and Getabec Public.
Diversification Opportunities for Kang Yong and Getabec Public
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kang and Getabec is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Kang Yong Electric and Getabec Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getabec 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 Getabec Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getabec Public has no effect on the direction of Kang Yong i.e., Kang Yong and Getabec Public go up and down completely randomly.
Pair Corralation between Kang Yong and Getabec Public
Assuming the 90 days trading horizon Kang Yong Electric is expected to under-perform the Getabec Public. But the stock apears to be less risky and, when comparing its historical volatility, Kang Yong Electric is 6.38 times less risky than Getabec Public. The stock trades about -0.14 of its potential returns per unit of risk. The Getabec Public is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 71.00 in Getabec Public on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Getabec Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kang Yong Electric vs. Getabec Public
Performance |
| Timeline |
| Kang Yong Electric |
| Getabec Public |
Kang Yong and Getabec Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kang Yong and Getabec Public
The main advantage of trading using opposite Kang Yong and Getabec Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kang Yong position performs unexpectedly, Getabec 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 Getabec Public will offset losses from the drop in Getabec Public's long position.| Kang Yong vs. SCB X Public | Kang Yong vs. Kasikornbank Public | Kang Yong vs. PTT Public | Kang Yong vs. Kasikornbank Public |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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