Correlation Between Sun Vending and KGI Securities
Can any of the company-specific risk be diversified away by investing in both Sun Vending and KGI Securities 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 Sun Vending and KGI Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Vending Technology and KGI Securities Public, you can compare the effects of market volatilities on Sun Vending and KGI Securities 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 Sun Vending with a short position of KGI Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Vending and KGI Securities.
Diversification Opportunities for Sun Vending and KGI Securities
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sun and KGI is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sun Vending Technology and KGI Securities Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KGI Securities Public and Sun Vending 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 Sun Vending Technology are associated (or correlated) with KGI Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KGI Securities Public has no effect on the direction of Sun Vending i.e., Sun Vending and KGI Securities go up and down completely randomly.
Pair Corralation between Sun Vending and KGI Securities
Assuming the 90 days trading horizon Sun Vending Technology is expected to under-perform the KGI Securities. In addition to that, Sun Vending is 3.3 times more volatile than KGI Securities Public. It trades about -0.06 of its total potential returns per unit of risk. KGI Securities Public is currently generating about -0.01 per unit of volatility. If you would invest 432.00 in KGI Securities Public on August 31, 2024 and sell it today you would lose (12.00) from holding KGI Securities Public or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Vending Technology vs. KGI Securities Public
Performance |
| Timeline |
| Sun Vending Technology |
| KGI Securities Public |
Sun Vending and KGI Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Vending and KGI Securities
The main advantage of trading using opposite Sun Vending and KGI Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Vending position performs unexpectedly, KGI Securities 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 KGI Securities will offset losses from the drop in KGI Securities' long position.| Sun Vending vs. Hana Microelectronics Public | Sun Vending vs. Global Power Synergy | Sun Vending vs. Siam Global House | Sun Vending vs. Gulf Energy Development |
| KGI Securities vs. Peerapat Technology Public | KGI Securities vs. 2S Metal Public | KGI Securities vs. Silicon Craft Technology | KGI Securities vs. WHA Industrial Leasehold |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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