Correlation Between Peoples Garment and Kulthorn Kirby
Can any of the company-specific risk be diversified away by investing in both Peoples Garment and Kulthorn Kirby 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 Peoples Garment and Kulthorn Kirby into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peoples Garment Public and Kulthorn Kirby Public, you can compare the effects of market volatilities on Peoples Garment and Kulthorn Kirby 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 Peoples Garment with a short position of Kulthorn Kirby. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Garment and Kulthorn Kirby.
Diversification Opportunities for Peoples Garment and Kulthorn Kirby
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Peoples and Kulthorn is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Garment Public and Kulthorn Kirby Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kulthorn Kirby Public and Peoples Garment 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 Peoples Garment Public are associated (or correlated) with Kulthorn Kirby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kulthorn Kirby Public has no effect on the direction of Peoples Garment i.e., Peoples Garment and Kulthorn Kirby go up and down completely randomly.
Pair Corralation between Peoples Garment and Kulthorn Kirby
If you would invest 890.00 in Peoples Garment Public on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Peoples Garment Public or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Garment Public vs. Kulthorn Kirby Public
Performance |
| Timeline |
| Peoples Garment Public |
| Kulthorn Kirby Public |
Peoples Garment and Kulthorn Kirby Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Garment and Kulthorn Kirby
The main advantage of trading using opposite Peoples Garment and Kulthorn Kirby positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Garment position performs unexpectedly, Kulthorn Kirby 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 Kulthorn Kirby will offset losses from the drop in Kulthorn Kirby's long position.| Peoples Garment vs. Ocean Glass Public | Peoples Garment vs. President Bakery Public | Peoples Garment vs. Pan Asia Footwear | Peoples Garment vs. Pato Chemical Industry |
| Kulthorn Kirby vs. KGI Securities Public | Kulthorn Kirby vs. Kang Yong Electric | Kulthorn Kirby vs. Fine Metal Technologies | Kulthorn Kirby vs. Jasmine International 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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