Correlation Between KINGBOARD CHEMICAL and INTEGR SILICON

Can any of the company-specific risk be diversified away by investing in both KINGBOARD CHEMICAL and INTEGR SILICON 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 KINGBOARD CHEMICAL and INTEGR SILICON into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KINGBOARD CHEMICAL and INTEGR SILICON SOL, you can compare the effects of market volatilities on KINGBOARD CHEMICAL and INTEGR SILICON 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 KINGBOARD CHEMICAL with a short position of INTEGR SILICON. Check out your portfolio center. Please also check ongoing floating volatility patterns of KINGBOARD CHEMICAL and INTEGR SILICON.

Diversification Opportunities for KINGBOARD CHEMICAL and INTEGR SILICON

0.0

Correlation Coefficient

KINGBOARD CHEMICAL  INTEGR SILICON

Pay attention - limited upside

The 3 months correlation between KINGBOARD and INTEGR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KINGBOARD CHEMICAL and INTEGR SILICON SOL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEGR SILICON SOL and KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL are associated (or correlated) with INTEGR SILICON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEGR SILICON SOL has no effect on the direction of KINGBOARD CHEMICAL i.e., KINGBOARD CHEMICAL and INTEGR SILICON go up and down completely randomly.

Pair Corralation between KINGBOARD CHEMICAL and INTEGR SILICON

If you would invest  185.00  in KINGBOARD CHEMICAL on September 4, 2024 and sell it today you would earn a total of  43.00  from holding KINGBOARD CHEMICAL or generate 23.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

KINGBOARD CHEMICAL  vs.  INTEGR SILICON SOL

KINGBOARD CHEMICAL

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KINGBOARD CHEMICAL are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, KINGBOARD CHEMICAL exhibited solid returns over the last few months and may actually be approaching a breakup point.

INTEGR SILICON SOL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTEGR SILICON SOL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTEGR SILICON is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with KINGBOARD CHEMICAL and INTEGR SILICON

The main advantage of trading using opposite KINGBOARD CHEMICAL and INTEGR SILICON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KINGBOARD CHEMICAL position performs unexpectedly, INTEGR SILICON 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 INTEGR SILICON will offset losses from the drop in INTEGR SILICON's long position.

The idea behind KINGBOARD CHEMICAL and INTEGR SILICON SOL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.