Correlation Between NSL Foods and Kang Yong
Can any of the company-specific risk be diversified away by investing in both NSL Foods and Kang Yong 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 NSL Foods and Kang Yong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NSL Foods Public and Kang Yong Electric, you can compare the effects of market volatilities on NSL Foods and Kang Yong 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 NSL Foods with a short position of Kang Yong. Check out your portfolio center. Please also check ongoing floating volatility patterns of NSL Foods and Kang Yong.
Diversification Opportunities for NSL Foods and Kang Yong
Average diversification
The 3 months correlation between NSL and Kang is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding NSL Foods Public and Kang Yong Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kang Yong Electric and NSL Foods 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 NSL Foods Public are associated (or correlated) with Kang Yong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kang Yong Electric has no effect on the direction of NSL Foods i.e., NSL Foods and Kang Yong go up and down completely randomly.
Pair Corralation between NSL Foods and Kang Yong
Assuming the 90 days trading horizon NSL Foods is expected to generate 2.92 times less return on investment than Kang Yong. In addition to that, NSL Foods is 3.59 times more volatile than Kang Yong Electric. It trades about 0.01 of its total potential returns per unit of risk. Kang Yong Electric is currently generating about 0.12 per unit of volatility. If you would invest 28,700 in Kang Yong Electric on November 22, 2024 and sell it today you would earn a total of 500.00 from holding Kang Yong Electric or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NSL Foods Public vs. Kang Yong Electric
Performance |
| Timeline |
| NSL Foods Public |
| Kang Yong Electric |
NSL Foods and Kang Yong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NSL Foods and Kang Yong
The main advantage of trading using opposite NSL Foods and Kang Yong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NSL Foods position performs unexpectedly, Kang Yong 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 Kang Yong will offset losses from the drop in Kang Yong's long position.| NSL Foods vs. Central Retail | NSL Foods vs. CENTRAL RETAIL P | NSL Foods vs. Symphony Communication Public | NSL Foods vs. Information and Communication |
| Kang Yong vs. Hwa Fong Rubber | Kang Yong vs. Hana Microelectronics Public | Kang Yong vs. KGI Securities Public | Kang Yong vs. Haad Thip 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |