Correlation Between KCE Electronics and Silicon Craft
Can any of the company-specific risk be diversified away by investing in both KCE Electronics and Silicon Craft 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 KCE Electronics and Silicon Craft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KCE Electronics Public and Silicon Craft Technology, you can compare the effects of market volatilities on KCE Electronics and Silicon Craft 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 KCE Electronics with a short position of Silicon Craft. Check out your portfolio center. Please also check ongoing floating volatility patterns of KCE Electronics and Silicon Craft.
Diversification Opportunities for KCE Electronics and Silicon Craft
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between KCE and Silicon is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding KCE Electronics Public and Silicon Craft Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Craft Technology and KCE Electronics 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 KCE Electronics Public are associated (or correlated) with Silicon Craft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Craft Technology has no effect on the direction of KCE Electronics i.e., KCE Electronics and Silicon Craft go up and down completely randomly.
Pair Corralation between KCE Electronics and Silicon Craft
Assuming the 90 days trading horizon KCE Electronics Public is expected to under-perform the Silicon Craft. In addition to that, KCE Electronics is 1.73 times more volatile than Silicon Craft Technology. It trades about -0.16 of its total potential returns per unit of risk. Silicon Craft Technology is currently generating about -0.22 per unit of volatility. If you would invest 410.00 in Silicon Craft Technology on December 2, 2024 and sell it today you would lose (86.00) from holding Silicon Craft Technology or give up 20.98% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
KCE Electronics Public vs. Silicon Craft Technology
Performance |
Timeline |
KCE Electronics Public |
Silicon Craft Technology |
KCE Electronics and Silicon Craft Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KCE Electronics and Silicon Craft
The main advantage of trading using opposite KCE Electronics and Silicon Craft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KCE Electronics position performs unexpectedly, Silicon Craft 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 Silicon Craft will offset losses from the drop in Silicon Craft's long position.KCE Electronics vs. Hana Microelectronics Public | KCE Electronics vs. Kasikornbank Public | KCE Electronics vs. Land and Houses | KCE Electronics vs. Indorama Ventures PCL |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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