Correlation Between Lee Feed and Khonburi Sugar
Can any of the company-specific risk be diversified away by investing in both Lee Feed and Khonburi Sugar 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 Lee Feed and Khonburi Sugar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lee Feed Mill and Khonburi Sugar Public, you can compare the effects of market volatilities on Lee Feed and Khonburi Sugar 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 Lee Feed with a short position of Khonburi Sugar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lee Feed and Khonburi Sugar.
Diversification Opportunities for Lee Feed and Khonburi Sugar
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lee and Khonburi is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lee Feed Mill and Khonburi Sugar Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khonburi Sugar Public and Lee Feed 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 Lee Feed Mill are associated (or correlated) with Khonburi Sugar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khonburi Sugar Public has no effect on the direction of Lee Feed i.e., Lee Feed and Khonburi Sugar go up and down completely randomly.
Pair Corralation between Lee Feed and Khonburi Sugar
Assuming the 90 days trading horizon Lee Feed Mill is expected to generate 0.74 times more return on investment than Khonburi Sugar. However, Lee Feed Mill is 1.35 times less risky than Khonburi Sugar. It trades about -0.08 of its potential returns per unit of risk. Khonburi Sugar Public is currently generating about -0.06 per unit of risk. If you would invest 248.00 in Lee Feed Mill on August 31, 2024 and sell it today you would lose (6.00) from holding Lee Feed Mill or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lee Feed Mill vs. Khonburi Sugar Public
Performance |
| Timeline |
| Lee Feed Mill |
| Khonburi Sugar Public |
Lee Feed and Khonburi Sugar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lee Feed and Khonburi Sugar
The main advantage of trading using opposite Lee Feed and Khonburi Sugar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lee Feed position performs unexpectedly, Khonburi Sugar 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 Khonburi Sugar will offset losses from the drop in Khonburi Sugar's long position.| Lee Feed vs. GFPT Public | Lee Feed vs. KGI Securities Public | Lee Feed vs. Thai Vegetable Oil | Lee Feed vs. Lam Soon Public |
| Khonburi Sugar vs. MK Restaurant Group | Khonburi Sugar vs. TRC Construction Public | Khonburi Sugar vs. Bangkok Expressway and | Khonburi Sugar vs. Lohakit Metal 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world |