Correlation Between Stock Exchange and CK Power
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and CK Power 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 Stock Exchange and CK Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and CK Power Public, you can compare the effects of market volatilities on Stock Exchange and CK Power 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 Stock Exchange with a short position of CK Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and CK Power.
Diversification Opportunities for Stock Exchange and CK Power
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Stock and CKP-R is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and CK Power Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Power Public and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with CK Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Power Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and CK Power go up and down completely randomly.
Pair Corralation between Stock Exchange and CK Power
Assuming the 90 days trading horizon Stock Exchange Of is expected to generate 0.36 times more return on investment than CK Power. However, Stock Exchange Of is 2.82 times less risky than CK Power. It trades about -0.13 of its potential returns per unit of risk. CK Power Public is currently generating about -0.23 per unit of risk. If you would invest 146,295 in Stock Exchange Of on September 4, 2024 and sell it today you would lose (2,584) from holding Stock Exchange Of or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. CK Power Public
Performance |
| Timeline |
Stock Exchange and CK Power Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
CK Power Public
Pair trading matchups for CK Power
Pair Trading with Stock Exchange and CK Power
The main advantage of trading using opposite Stock Exchange and CK Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, CK Power 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 CK Power will offset losses from the drop in CK Power's long position.| Stock Exchange vs. MFC Asset Management | Stock Exchange vs. Mena Transport Public | Stock Exchange vs. Lohakit Metal Public | Stock Exchange vs. Porn Prom Metal |
| CK Power vs. TPI Polene Power | CK Power vs. SPCG Public | CK Power vs. CK Power Public | CK Power vs. The Erawan Group |
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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