Correlation Between Premier Marketing and K W
Can any of the company-specific risk be diversified away by investing in both Premier Marketing and K W 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 Premier Marketing and K W into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Marketing Public and K W Metal, you can compare the effects of market volatilities on Premier Marketing and K W 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 Premier Marketing with a short position of K W. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Marketing and K W.
Diversification Opportunities for Premier Marketing and K W
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Premier and KWM is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Premier Marketing Public and K W Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K W Metal and Premier Marketing 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 Premier Marketing Public are associated (or correlated) with K W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K W Metal has no effect on the direction of Premier Marketing i.e., Premier Marketing and K W go up and down completely randomly.
Pair Corralation between Premier Marketing and K W
Assuming the 90 days horizon Premier Marketing Public is expected to under-perform the K W. But the stock apears to be less risky and, when comparing its historical volatility, Premier Marketing Public is 1.91 times less risky than K W. The stock trades about -0.24 of its potential returns per unit of risk. The K W Metal is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 121.00 in K W Metal on September 14, 2024 and sell it today you would earn a total of 9.00 from holding K W Metal or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Premier Marketing Public vs. K W Metal
Performance |
| Timeline |
| Premier Marketing Public |
| K W Metal |
Premier Marketing and K W Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Marketing and K W
The main advantage of trading using opposite Premier Marketing and K W positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Marketing position performs unexpectedly, K W 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 K W will offset losses from the drop in K W's long position.| Premier Marketing vs. Haad Thip Public | Premier Marketing vs. MK Restaurant Group | Premier Marketing vs. Thai Union Group | Premier Marketing vs. Taokaenoi Food Marketing |
| K W vs. Masterkool International Public | K W vs. Infraset Public | K W vs. KC Metalsheet Public | K W vs. DOD Biotech 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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