Correlation Between Construction JSC and Kien Giang
Can any of the company-specific risk be diversified away by investing in both Construction JSC and Kien Giang 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 Construction JSC and Kien Giang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Construction JSC No5 and Kien Giang Construction, you can compare the effects of market volatilities on Construction JSC and Kien Giang 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 Construction JSC with a short position of Kien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Construction JSC and Kien Giang.
Diversification Opportunities for Construction JSC and Kien Giang
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Construction and Kien is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Construction JSC No5 and Kien Giang Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kien Giang Construction and Construction JSC 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 Construction JSC No5 are associated (or correlated) with Kien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kien Giang Construction has no effect on the direction of Construction JSC i.e., Construction JSC and Kien Giang go up and down completely randomly.
Pair Corralation between Construction JSC and Kien Giang
Assuming the 90 days trading horizon Construction JSC No5 is expected to generate 1.81 times more return on investment than Kien Giang. However, Construction JSC is 1.81 times more volatile than Kien Giang Construction. It trades about 0.05 of its potential returns per unit of risk. Kien Giang Construction is currently generating about 0.03 per unit of risk. If you would invest 1,503,735 in Construction JSC No5 on September 29, 2024 and sell it today you would earn a total of 596,265 from holding Construction JSC No5 or generate 39.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 66.19% |
Values | Daily Returns |
Construction JSC No5 vs. Kien Giang Construction
Performance |
Timeline |
Construction JSC No5 |
Kien Giang Construction |
Construction JSC and Kien Giang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Construction JSC and Kien Giang
The main advantage of trading using opposite Construction JSC and Kien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Construction JSC position performs unexpectedly, Kien Giang 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 Kien Giang will offset losses from the drop in Kien Giang's long position.Construction JSC vs. FIT INVEST JSC | Construction JSC vs. Damsan JSC | Construction JSC vs. An Phat Plastic | Construction JSC vs. Alphanam ME |
Kien Giang vs. FIT INVEST JSC | Kien Giang vs. Damsan JSC | Kien Giang vs. An Phat Plastic | Kien Giang vs. Alphanam ME |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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