Correlation Between Exotic Food and KT Medical
Can any of the company-specific risk be diversified away by investing in both Exotic Food and KT Medical 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 Exotic Food and KT Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exotic Food Public and KT Medical Service, you can compare the effects of market volatilities on Exotic Food and KT Medical 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 Exotic Food with a short position of KT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exotic Food and KT Medical.
Diversification Opportunities for Exotic Food and KT Medical
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Exotic and KTMS is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Exotic Food Public and KT Medical Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Medical Service and Exotic Food 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 Exotic Food Public are associated (or correlated) with KT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Medical Service has no effect on the direction of Exotic Food i.e., Exotic Food and KT Medical go up and down completely randomly.
Pair Corralation between Exotic Food and KT Medical
Assuming the 90 days horizon Exotic Food Public is expected to generate 0.59 times more return on investment than KT Medical. However, Exotic Food Public is 1.7 times less risky than KT Medical. It trades about -0.01 of its potential returns per unit of risk. KT Medical Service is currently generating about -0.14 per unit of risk. If you would invest 1,860 in Exotic Food Public on November 27, 2024 and sell it today you would lose (10.00) from holding Exotic Food Public or give up 0.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exotic Food Public vs. KT Medical Service
Performance |
| Timeline |
| Exotic Food Public |
| KT Medical Service |
Exotic Food and KT Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exotic Food and KT Medical
The main advantage of trading using opposite Exotic Food and KT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exotic Food position performs unexpectedly, KT Medical 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 KT Medical will offset losses from the drop in KT Medical's long position.| Exotic Food vs. Mega Lifesciences Public | Exotic Food vs. Com7 PCL | Exotic Food vs. Thai Union Group | Exotic Food vs. Jay Mart Public |
| KT Medical vs. DTC Enterprise PCL | KT Medical vs. Yong Concrete PCL | KT Medical vs. Make To Win | KT Medical vs. Aurora Design PCL |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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