Correlation Between BuilderSmart Public and Kang Yong
Can any of the company-specific risk be diversified away by investing in both BuilderSmart Public and Kang Yong 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 BuilderSmart Public and Kang Yong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BuilderSmart Public and Kang Yong Electric, you can compare the effects of market volatilities on BuilderSmart Public and Kang Yong 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 BuilderSmart Public with a short position of Kang Yong. Check out your portfolio center. Please also check ongoing floating volatility patterns of BuilderSmart Public and Kang Yong.
Diversification Opportunities for BuilderSmart Public and Kang Yong
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BuilderSmart and Kang is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding BuilderSmart Public and Kang Yong Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kang Yong Electric and BuilderSmart Public 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 BuilderSmart Public are associated (or correlated) with Kang Yong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kang Yong Electric has no effect on the direction of BuilderSmart Public i.e., BuilderSmart Public and Kang Yong go up and down completely randomly.
Pair Corralation between BuilderSmart Public and Kang Yong
Assuming the 90 days trading horizon BuilderSmart Public is expected to generate 1.07 times less return on investment than Kang Yong. In addition to that, BuilderSmart Public is 1.0 times more volatile than Kang Yong Electric. It trades about 0.04 of its total potential returns per unit of risk. Kang Yong Electric is currently generating about 0.04 per unit of volatility. If you would invest 29,642 in Kang Yong Electric on October 4, 2024 and sell it today you would lose (842.00) from holding Kang Yong Electric or give up 2.84% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BuilderSmart Public vs. Kang Yong Electric
Performance |
Timeline |
BuilderSmart Public |
Kang Yong Electric |
BuilderSmart Public and Kang Yong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BuilderSmart Public and Kang Yong
The main advantage of trading using opposite BuilderSmart Public and Kang Yong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BuilderSmart Public position performs unexpectedly, Kang Yong 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 Kang Yong will offset losses from the drop in Kang Yong's long position.BuilderSmart Public vs. Wave Entertainment Public | BuilderSmart Public vs. Vibhavadi Medical Center | BuilderSmart Public vs. TPI Polene Public | BuilderSmart Public vs. Asia Green Energy |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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