Correlation Between Kang Yong and Jack Chia
Can any of the company-specific risk be diversified away by investing in both Kang Yong and Jack Chia 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 Kang Yong and Jack Chia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kang Yong Electric and Jack Chia Industries, you can compare the effects of market volatilities on Kang Yong and Jack Chia 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 Kang Yong with a short position of Jack Chia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kang Yong and Jack Chia.
Diversification Opportunities for Kang Yong and Jack Chia
Good diversification
The 3 months correlation between Kang and Jack is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kang Yong Electric and Jack Chia Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Chia Industries and Kang Yong 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 Kang Yong Electric are associated (or correlated) with Jack Chia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Chia Industries has no effect on the direction of Kang Yong i.e., Kang Yong and Jack Chia go up and down completely randomly.
Pair Corralation between Kang Yong and Jack Chia
Assuming the 90 days trading horizon Kang Yong Electric is expected to generate 0.89 times more return on investment than Jack Chia. However, Kang Yong Electric is 1.13 times less risky than Jack Chia. It trades about 0.09 of its potential returns per unit of risk. Jack Chia Industries is currently generating about -0.03 per unit of risk. If you would invest 28,900 in Kang Yong Electric on December 5, 2024 and sell it today you would earn a total of 1,000.00 from holding Kang Yong Electric or generate 3.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kang Yong Electric vs. Jack Chia Industries
Performance |
Timeline |
Kang Yong Electric |
Jack Chia Industries |
Kang Yong and Jack Chia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kang Yong and Jack Chia
The main advantage of trading using opposite Kang Yong and Jack Chia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kang Yong position performs unexpectedly, Jack Chia 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 Jack Chia will offset losses from the drop in Jack Chia's long position.Kang Yong vs. Hwa Fong Rubber | Kang Yong vs. Hana Microelectronics Public | Kang Yong vs. KGI Securities Public | Kang Yong vs. Haad Thip Public |
Jack Chia vs. Kang Yong Electric | Jack Chia vs. Krungdhep Sophon Public | Jack Chia vs. KGI Securities Public | Jack Chia vs. Inoue Rubber Public |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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