Correlation Between Digistar Bhd and K One
Can any of the company-specific risk be diversified away by investing in both Digistar Bhd 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 Digistar Bhd and K One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digistar Bhd and K One Technology Bhd, you can compare the effects of market volatilities on Digistar Bhd 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 Digistar Bhd with a short position of K One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digistar Bhd and K One.
Diversification Opportunities for Digistar Bhd and K One
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Digistar and 0111 is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Digistar 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 Digistar Bhd 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 Digistar 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 Digistar Bhd i.e., Digistar Bhd and K One go up and down completely randomly.
Pair Corralation between Digistar Bhd and K One
Assuming the 90 days trading horizon Digistar Bhd is expected to generate 2.23 times less return on investment than K One. In addition to that, Digistar Bhd is 1.09 times more volatile than K One Technology Bhd. It trades about 0.02 of its total potential returns per unit of risk. K One Technology Bhd is currently generating about 0.04 per unit of volatility. If you would invest 15.00 in K One Technology Bhd on September 14, 2024 and sell it today you would earn a total of 3.00 from holding K One Technology Bhd or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digistar Bhd vs. K One Technology Bhd
Performance |
| Timeline |
| Digistar Bhd |
| K One Technology |
Digistar Bhd and K One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digistar Bhd and K One
The main advantage of trading using opposite Digistar Bhd and K One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digistar Bhd 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.| Digistar Bhd vs. PMB Technology Bhd | Digistar Bhd vs. Sunway Construction Group | Digistar Bhd vs. Tex Cycle Technology | Digistar Bhd vs. Ho Hup Construction |
| K One vs. Uchi Technologies Bhd | K One vs. Al Aqar Healthcare | K One vs. PMB Technology Bhd | K One vs. Digistar 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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