Correlation Between ViTrox Bhd and Keck Seng
Can any of the company-specific risk be diversified away by investing in both ViTrox Bhd and Keck Seng 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 ViTrox Bhd and Keck Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ViTrox Bhd and Keck Seng Malaysia, you can compare the effects of market volatilities on ViTrox Bhd and Keck Seng 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 ViTrox Bhd with a short position of Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of ViTrox Bhd and Keck Seng.
Diversification Opportunities for ViTrox Bhd and Keck Seng
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between ViTrox and Keck is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding ViTrox Bhd and Keck Seng Malaysia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keck Seng Malaysia and ViTrox 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 ViTrox Bhd are associated (or correlated) with Keck Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keck Seng Malaysia has no effect on the direction of ViTrox Bhd i.e., ViTrox Bhd and Keck Seng go up and down completely randomly.
Pair Corralation between ViTrox Bhd and Keck Seng
Assuming the 90 days trading horizon ViTrox Bhd is expected to generate 5.22 times less return on investment than Keck Seng. In addition to that, ViTrox Bhd is 1.97 times more volatile than Keck Seng Malaysia. It trades about 0.01 of its total potential returns per unit of risk. Keck Seng Malaysia is currently generating about 0.08 per unit of volatility. If you would invest 448.00 in Keck Seng Malaysia on September 4, 2024 and sell it today you would earn a total of 123.00 from holding Keck Seng Malaysia or generate 27.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ViTrox Bhd vs. Keck Seng Malaysia
Performance |
| Timeline |
| ViTrox Bhd |
| Keck Seng Malaysia |
ViTrox Bhd and Keck Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ViTrox Bhd and Keck Seng
The main advantage of trading using opposite ViTrox Bhd and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ViTrox Bhd position performs unexpectedly, Keck Seng 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 Keck Seng will offset losses from the drop in Keck Seng's long position.| ViTrox Bhd vs. Eversafe Rubber Bhd | ViTrox Bhd vs. Computer Forms Bhd | ViTrox Bhd vs. Leader Steel Holdings | ViTrox Bhd vs. Kluang Rubber |
| Keck Seng vs. Uchi Technologies Bhd | Keck Seng vs. Press Metal Bhd | Keck Seng vs. Alliance Financial Group | Keck Seng vs. Choo Bee Metal |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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