Correlation Between Silicon Craft and CK Power
Can any of the company-specific risk be diversified away by investing in both Silicon Craft 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 Silicon Craft and CK Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Craft Technology and CK Power Public, you can compare the effects of market volatilities on Silicon Craft 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 Silicon Craft with a short position of CK Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Craft and CK Power.
Diversification Opportunities for Silicon Craft and CK Power
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Silicon and CKP-R is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Craft Technology 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 Silicon Craft 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 Silicon Craft Technology 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 Silicon Craft i.e., Silicon Craft and CK Power go up and down completely randomly.
Pair Corralation between Silicon Craft and CK Power
Assuming the 90 days trading horizon Silicon Craft Technology is expected to under-perform the CK Power. In addition to that, Silicon Craft is 2.48 times more volatile than CK Power Public. It trades about -0.34 of its total potential returns per unit of risk. CK Power Public is currently generating about -0.28 per unit of volatility. If you would invest 366.00 in CK Power Public on September 2, 2024 and sell it today you would lose (38.00) from holding CK Power Public or give up 10.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Craft Technology vs. CK Power Public
Performance |
| Timeline |
| Silicon Craft Technology |
| CK Power Public |
Silicon Craft and CK Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Craft and CK Power
The main advantage of trading using opposite Silicon Craft and CK Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Craft 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.| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand Public |
| CK Power vs. Central Retail | CK Power vs. Heng Leasing Capital | CK Power vs. Siam Technic Concrete | CK Power vs. Sun Vending Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |