Correlation Between SITC International and Kawasaki Kisen
Can any of the company-specific risk be diversified away by investing in both SITC International and Kawasaki Kisen 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 SITC International and Kawasaki Kisen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SITC International Holdings and Kawasaki Kisen Kaisha, you can compare the effects of market volatilities on SITC International and Kawasaki Kisen 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 SITC International with a short position of Kawasaki Kisen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SITC International and Kawasaki Kisen.
Diversification Opportunities for SITC International and Kawasaki Kisen
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SITC and Kawasaki is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding SITC International Holdings and Kawasaki Kisen Kaisha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kawasaki Kisen Kaisha and SITC International 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 SITC International Holdings are associated (or correlated) with Kawasaki Kisen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kawasaki Kisen Kaisha has no effect on the direction of SITC International i.e., SITC International and Kawasaki Kisen go up and down completely randomly.
Pair Corralation between SITC International and Kawasaki Kisen
Assuming the 90 days horizon SITC International is expected to generate 11.5 times less return on investment than Kawasaki Kisen. But when comparing it to its historical volatility, SITC International Holdings is 4.27 times less risky than Kawasaki Kisen. It trades about 0.04 of its potential returns per unit of risk. Kawasaki Kisen Kaisha is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 545.00 in Kawasaki Kisen Kaisha on September 2, 2024 and sell it today you would earn a total of 925.00 from holding Kawasaki Kisen Kaisha or generate 169.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.69% |
| Values | Daily Returns |
SITC International Holdings vs. Kawasaki Kisen Kaisha
Performance |
| Timeline |
| SITC International |
| Kawasaki Kisen Kaisha |
SITC International and Kawasaki Kisen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SITC International and Kawasaki Kisen
The main advantage of trading using opposite SITC International and Kawasaki Kisen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SITC International position performs unexpectedly, Kawasaki Kisen 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 Kawasaki Kisen will offset losses from the drop in Kawasaki Kisen's long position.| SITC International vs. Nippon Yusen Kabushiki | SITC International vs. AP Moeller | SITC International vs. Orient Overseas Limited | SITC International vs. Western Bulk Chartering |
| Kawasaki Kisen vs. Pacific Basin Shipping | Kawasaki Kisen vs. Hapag Lloyd Aktiengesellschaft | Kawasaki Kisen vs. Hapag Lloyd Aktiengesellschaft | Kawasaki Kisen vs. Hutchison Port Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| 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 | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |