Correlation Between KGI Securities and Tipco Foods
Can any of the company-specific risk be diversified away by investing in both KGI Securities and Tipco Foods 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 KGI Securities and Tipco Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KGI Securities Public and Tipco Foods Public, you can compare the effects of market volatilities on KGI Securities and Tipco Foods 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 KGI Securities with a short position of Tipco Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of KGI Securities and Tipco Foods.
Diversification Opportunities for KGI Securities and Tipco Foods
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KGI and Tipco is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding KGI Securities Public and Tipco Foods Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tipco Foods Public and KGI Securities 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 KGI Securities Public are associated (or correlated) with Tipco Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tipco Foods Public has no effect on the direction of KGI Securities i.e., KGI Securities and Tipco Foods go up and down completely randomly.
Pair Corralation between KGI Securities and Tipco Foods
Assuming the 90 days trading horizon KGI Securities Public is expected to under-perform the Tipco Foods. In addition to that, KGI Securities is 1.36 times more volatile than Tipco Foods Public. It trades about -0.21 of its total potential returns per unit of risk. Tipco Foods Public is currently generating about 0.12 per unit of volatility. If you would invest 985.00 in Tipco Foods Public on September 6, 2024 and sell it today you would earn a total of 35.00 from holding Tipco Foods Public or generate 3.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
KGI Securities Public vs. Tipco Foods Public
Performance |
Timeline |
KGI Securities Public |
Tipco Foods Public |
KGI Securities and Tipco Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KGI Securities and Tipco Foods
The main advantage of trading using opposite KGI Securities and Tipco Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KGI Securities position performs unexpectedly, Tipco Foods 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 Tipco Foods will offset losses from the drop in Tipco Foods' long position.KGI Securities vs. Hwa Fong Rubber | KGI Securities vs. Charan Insurance Public | KGI Securities vs. Charoen Pokphand Foods | KGI Securities vs. Thai Rubber Latex |
Tipco Foods vs. Tipco Asphalt Public | Tipco Foods vs. Thai Vegetable Oil | Tipco Foods vs. Thai Union Group | Tipco Foods vs. TISCO Financial Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |