Correlation Between CKM Building and Materials Analysis
Can any of the company-specific risk be diversified away by investing in both CKM Building and Materials Analysis 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 CKM Building and Materials Analysis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CKM Building Material and Materials Analysis Technology, you can compare the effects of market volatilities on CKM Building and Materials Analysis 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 CKM Building with a short position of Materials Analysis. Check out your portfolio center. Please also check ongoing floating volatility patterns of CKM Building and Materials Analysis.
Diversification Opportunities for CKM Building and Materials Analysis
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CKM and Materials is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding CKM Building Material and Materials Analysis Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materials Analysis and CKM Building 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 CKM Building Material are associated (or correlated) with Materials Analysis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Materials Analysis has no effect on the direction of CKM Building i.e., CKM Building and Materials Analysis go up and down completely randomly.
Pair Corralation between CKM Building and Materials Analysis
Assuming the 90 days trading horizon CKM Building Material is expected to generate 0.32 times more return on investment than Materials Analysis. However, CKM Building Material is 3.17 times less risky than Materials Analysis. It trades about 0.08 of its potential returns per unit of risk. Materials Analysis Technology is currently generating about -0.17 per unit of risk. If you would invest 3,620 in CKM Building Material on December 5, 2024 and sell it today you would earn a total of 40.00 from holding CKM Building Material or generate 1.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CKM Building Material vs. Materials Analysis Technology
Performance |
Timeline |
CKM Building Material |
Materials Analysis |
CKM Building and Materials Analysis Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CKM Building and Materials Analysis
The main advantage of trading using opposite CKM Building and Materials Analysis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CKM Building position performs unexpectedly, Materials Analysis 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 Materials Analysis will offset losses from the drop in Materials Analysis' long position.CKM Building vs. Otsuka Information Technology | CKM Building vs. Shin Kong Financial | CKM Building vs. Union Bank of | CKM Building vs. Adata Technology Co |
Materials Analysis vs. Integrated Service Technology | Materials Analysis vs. ASE Industrial Holding | Materials Analysis vs. Gudeng Precision Industrial | Materials Analysis vs. eMemory 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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