Correlation Between Srisawad Power and KCE Electronics
Can any of the company-specific risk be diversified away by investing in both Srisawad Power and KCE Electronics 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 Srisawad Power and KCE Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Srisawad Power 1979 and KCE Electronics Public, you can compare the effects of market volatilities on Srisawad Power and KCE Electronics 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 Srisawad Power with a short position of KCE Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srisawad Power and KCE Electronics.
Diversification Opportunities for Srisawad Power and KCE Electronics
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Srisawad and KCE is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Srisawad Power 1979 and KCE Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCE Electronics Public and Srisawad Power 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 Srisawad Power 1979 are associated (or correlated) with KCE Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCE Electronics Public has no effect on the direction of Srisawad Power i.e., Srisawad Power and KCE Electronics go up and down completely randomly.
Pair Corralation between Srisawad Power and KCE Electronics
Assuming the 90 days trading horizon Srisawad Power 1979 is expected to generate 18.74 times more return on investment than KCE Electronics. However, Srisawad Power is 18.74 times more volatile than KCE Electronics Public. It trades about 0.04 of its potential returns per unit of risk. KCE Electronics Public is currently generating about -0.06 per unit of risk. If you would invest 5,075 in Srisawad Power 1979 on October 24, 2024 and sell it today you would lose (1,175) from holding Srisawad Power 1979 or give up 23.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Srisawad Power 1979 vs. KCE Electronics Public
Performance |
| Timeline |
| Srisawad Power 1979 |
| KCE Electronics Public |
Srisawad Power and KCE Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srisawad Power and KCE Electronics
The main advantage of trading using opposite Srisawad Power and KCE Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srisawad Power position performs unexpectedly, KCE Electronics 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 KCE Electronics will offset losses from the drop in KCE Electronics' long position.| Srisawad Power vs. Muangthai Capital Public | Srisawad Power vs. Carabao Group Public | Srisawad Power vs. TISCO Financial Group | Srisawad Power vs. Minor International Public |
| KCE Electronics vs. Hana Microelectronics Public | KCE Electronics vs. Kasikornbank Public | KCE Electronics vs. Land and Houses | KCE Electronics vs. Indorama Ventures PCL |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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