Correlation Between Sanko Diecasting and Kingsmen CMTI
Can any of the company-specific risk be diversified away by investing in both Sanko Diecasting 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 Sanko Diecasting and Kingsmen CMTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanko Diecasting Public and Kingsmen CMTI Public, you can compare the effects of market volatilities on Sanko Diecasting 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 Sanko Diecasting with a short position of Kingsmen CMTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanko Diecasting and Kingsmen CMTI.
Diversification Opportunities for Sanko Diecasting and Kingsmen CMTI
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sanko and Kingsmen is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sanko Diecasting Public 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 Sanko Diecasting 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 Sanko Diecasting Public 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 Sanko Diecasting i.e., Sanko Diecasting and Kingsmen CMTI go up and down completely randomly.
Pair Corralation between Sanko Diecasting and Kingsmen CMTI
Assuming the 90 days trading horizon Sanko Diecasting Public is expected to under-perform the Kingsmen CMTI. But the stock apears to be less risky and, when comparing its historical volatility, Sanko Diecasting Public is 1.98 times less risky than Kingsmen CMTI. The stock trades about -0.11 of its potential returns per unit of risk. The Kingsmen CMTI Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 114.00 in Kingsmen CMTI Public on November 5, 2024 and sell it today you would earn a total of 3.00 from holding Kingsmen CMTI Public or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanko Diecasting Public vs. Kingsmen CMTI Public
Performance |
| Timeline |
| Sanko Diecasting Public |
| Kingsmen CMTI Public |
Sanko Diecasting and Kingsmen CMTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanko Diecasting and Kingsmen CMTI
The main advantage of trading using opposite Sanko Diecasting and Kingsmen CMTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanko Diecasting 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.| Sanko Diecasting vs. Thai Stanley Electric | Sanko Diecasting vs. Somboon Advance Technology | Sanko Diecasting vs. PCS Machine Group | Sanko Diecasting vs. Fortune Parts Industry |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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