Correlation Between News Network and Kingsmen CMTI
Can any of the company-specific risk be diversified away by investing in both News Network and Kingsmen CMTI 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 News Network and Kingsmen CMTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between News Network and Kingsmen CMTI Public, you can compare the effects of market volatilities on News Network and Kingsmen CMTI 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 News Network with a short position of Kingsmen CMTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Network and Kingsmen CMTI.
Diversification Opportunities for News Network and Kingsmen CMTI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between News and Kingsmen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding News Network and Kingsmen CMTI Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsmen CMTI Public and News Network 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 News Network are associated (or correlated) with Kingsmen CMTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsmen CMTI Public has no effect on the direction of News Network i.e., News Network and Kingsmen CMTI go up and down completely randomly.
Pair Corralation between News Network and Kingsmen CMTI
Assuming the 90 days trading horizon News Network is expected to generate 1.28 times more return on investment than Kingsmen CMTI. However, News Network is 1.28 times more volatile than Kingsmen CMTI Public. It trades about 0.13 of its potential returns per unit of risk. Kingsmen CMTI Public is currently generating about 0.04 per unit of risk. If you would invest 2.00 in News Network on January 18, 2025 and sell it today you would lose (1.00) from holding News Network or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
News Network vs. Kingsmen CMTI Public
Performance |
| Timeline |
| News Network |
| Kingsmen CMTI Public |
News Network and Kingsmen CMTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News Network and Kingsmen CMTI
The main advantage of trading using opposite News Network and Kingsmen CMTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News Network position performs unexpectedly, Kingsmen CMTI 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 Kingsmen CMTI will offset losses from the drop in Kingsmen CMTI's long position.| News Network vs. Internet Thailand Public | News Network vs. Millcon Steel Public | News Network vs. Hydrotek Public | News Network vs. E for L |
| Kingsmen CMTI vs. Cho Thavee Public | Kingsmen CMTI vs. G Capital Public | Kingsmen CMTI vs. Thai Ha Public | Kingsmen CMTI vs. Panjawattana Plastic 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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