Correlation Between Cuckoo Electronics and KMH Hitech
Can any of the company-specific risk be diversified away by investing in both Cuckoo Electronics and KMH Hitech 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 Cuckoo Electronics and KMH Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuckoo Electronics Co and KMH Hitech Co, you can compare the effects of market volatilities on Cuckoo Electronics and KMH Hitech 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 Cuckoo Electronics with a short position of KMH Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuckoo Electronics and KMH Hitech.
Diversification Opportunities for Cuckoo Electronics and KMH Hitech
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cuckoo and KMH is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cuckoo Electronics Co and KMH Hitech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KMH Hitech and Cuckoo 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 Cuckoo Electronics Co are associated (or correlated) with KMH Hitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KMH Hitech has no effect on the direction of Cuckoo Electronics i.e., Cuckoo Electronics and KMH Hitech go up and down completely randomly.
Pair Corralation between Cuckoo Electronics and KMH Hitech
Assuming the 90 days trading horizon Cuckoo Electronics Co is expected to generate 1.2 times more return on investment than KMH Hitech. However, Cuckoo Electronics is 1.2 times more volatile than KMH Hitech Co. It trades about 0.0 of its potential returns per unit of risk. KMH Hitech Co is currently generating about -0.02 per unit of risk. If you would invest 2,965,000 in Cuckoo Electronics Co on August 18, 2025 and sell it today you would lose (45,000) from holding Cuckoo Electronics Co or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuckoo Electronics Co vs. KMH Hitech Co
Performance |
| Timeline |
| Cuckoo Electronics |
| KMH Hitech |
Cuckoo Electronics and KMH Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuckoo Electronics and KMH Hitech
The main advantage of trading using opposite Cuckoo Electronics and KMH Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuckoo Electronics position performs unexpectedly, KMH Hitech 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 KMH Hitech will offset losses from the drop in KMH Hitech's long position.| Cuckoo Electronics vs. Wonbang Tech Co | Cuckoo Electronics vs. Vitzro Tech Co | Cuckoo Electronics vs. Ewon Comfortech Co | Cuckoo Electronics vs. Innowireless Co |
| KMH Hitech vs. Coloray International Investment | KMH Hitech vs. Stic Investments | KMH Hitech vs. Ecoplastic | KMH Hitech vs. Golden Bridge 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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