Correlation Between Winner Group and Kingsmen CMTI
Can any of the company-specific risk be diversified away by investing in both Winner Group and Kingsmen CMTI 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 Winner Group and Kingsmen CMTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winner Group Enterprise and Kingsmen CMTI Public, you can compare the effects of market volatilities on Winner Group and Kingsmen CMTI 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 Winner Group with a short position of Kingsmen CMTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winner Group and Kingsmen CMTI.
Diversification Opportunities for Winner Group and Kingsmen CMTI
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Winner and Kingsmen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Winner Group Enterprise and Kingsmen CMTI Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsmen CMTI Public and Winner Group 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 Winner Group Enterprise are associated (or correlated) with Kingsmen CMTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsmen CMTI Public has no effect on the direction of Winner Group i.e., Winner Group and Kingsmen CMTI go up and down completely randomly.
Pair Corralation between Winner Group and Kingsmen CMTI
Assuming the 90 days trading horizon Winner Group Enterprise is expected to generate 0.29 times more return on investment than Kingsmen CMTI. However, Winner Group Enterprise is 3.41 times less risky than Kingsmen CMTI. It trades about 0.02 of its potential returns per unit of risk. Kingsmen CMTI Public is currently generating about -0.04 per unit of risk. If you would invest 202.00 in Winner Group Enterprise on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Winner Group Enterprise or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winner Group Enterprise vs. Kingsmen CMTI Public
Performance |
| Timeline |
| Winner Group Enterprise |
| Kingsmen CMTI Public |
Winner Group and Kingsmen CMTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winner Group and Kingsmen CMTI
The main advantage of trading using opposite Winner Group and Kingsmen CMTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winner Group position performs unexpectedly, Kingsmen CMTI 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 Kingsmen CMTI will offset losses from the drop in Kingsmen CMTI's long position.| Winner Group vs. T S Flour | Winner Group vs. Vintcom Technology PCL | Winner Group vs. Thanapiriya Public | Winner Group vs. Ubis Public |
| Kingsmen CMTI vs. Asphere Innovations Public | Kingsmen CMTI vs. Com7 PCL | Kingsmen CMTI vs. TKS Technologies Public | Kingsmen CMTI vs. Rajthanee Hospital Public |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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