Correlation Between Supercomnet Technologies and K One
Can any of the company-specific risk be diversified away by investing in both Supercomnet Technologies and K One 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 Supercomnet Technologies and K One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supercomnet Technologies Bhd and K One Technology Bhd, you can compare the effects of market volatilities on Supercomnet Technologies and K One 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 Supercomnet Technologies with a short position of K One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercomnet Technologies and K One.
Diversification Opportunities for Supercomnet Technologies and K One
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Supercomnet and 0111 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Supercomnet Technologies Bhd and K One Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K One Technology and Supercomnet Technologies 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 Supercomnet Technologies Bhd are associated (or correlated) with K One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K One Technology has no effect on the direction of Supercomnet Technologies i.e., Supercomnet Technologies and K One go up and down completely randomly.
Pair Corralation between Supercomnet Technologies and K One
Assuming the 90 days trading horizon Supercomnet Technologies Bhd is expected to under-perform the K One. But the stock apears to be less risky and, when comparing its historical volatility, Supercomnet Technologies Bhd is 6.49 times less risky than K One. The stock trades about -0.23 of its potential returns per unit of risk. The K One Technology Bhd is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 18.00 in K One Technology Bhd on October 20, 2024 and sell it today you would lose (1.00) from holding K One Technology Bhd or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supercomnet Technologies Bhd vs. K One Technology Bhd
Performance |
| Timeline |
| Supercomnet Technologies |
| K One Technology |
Supercomnet Technologies and K One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercomnet Technologies and K One
The main advantage of trading using opposite Supercomnet Technologies and K One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercomnet Technologies position performs unexpectedly, K One 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 K One will offset losses from the drop in K One's long position.| Supercomnet Technologies vs. MClean Technologies Bhd | Supercomnet Technologies vs. Kossan Rubber Industries | Supercomnet Technologies vs. Apollo Food Holdings | Supercomnet Technologies vs. Kluang Rubber |
| K One vs. Uchi Technologies Bhd | K One vs. FARM FRESH BERHAD | K One vs. Top Glove | K One vs. Genetec Technology Bhd |
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 Stocks Directory module to find actively traded stocks across global markets.
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