Correlation Between K One and Supercomnet Technologies
Can any of the company-specific risk be diversified away by investing in both K One and Supercomnet Technologies 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 K One and Supercomnet Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between K One Technology Bhd and Supercomnet Technologies Bhd, you can compare the effects of market volatilities on K One and Supercomnet Technologies 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 K One with a short position of Supercomnet Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and Supercomnet Technologies.
Diversification Opportunities for K One and Supercomnet Technologies
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 0111 and Supercomnet is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and Supercomnet Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercomnet Technologies and K One 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 K One Technology Bhd are associated (or correlated) with Supercomnet Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercomnet Technologies has no effect on the direction of K One i.e., K One and Supercomnet Technologies go up and down completely randomly.
Pair Corralation between K One and Supercomnet Technologies
Assuming the 90 days trading horizon K One Technology Bhd is expected to generate 2.46 times more return on investment than Supercomnet Technologies. However, K One is 2.46 times more volatile than Supercomnet Technologies Bhd. It trades about 0.02 of its potential returns per unit of risk. Supercomnet Technologies Bhd is currently generating about 0.01 per unit of risk. If you would invest 17.00 in K One Technology Bhd on September 1, 2024 and sell it today you would earn a total of 0.00 from holding K One Technology Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
K One Technology Bhd vs. Supercomnet Technologies Bhd
Performance |
| Timeline |
| K One Technology |
| Supercomnet Technologies |
K One and Supercomnet Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K One and Supercomnet Technologies
The main advantage of trading using opposite K One and Supercomnet Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K One position performs unexpectedly, Supercomnet Technologies 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 Supercomnet Technologies will offset losses from the drop in Supercomnet Technologies' long position.| K One vs. Sungei Bagan Rubber | K One vs. British American Tobacco | K One vs. Lyc Healthcare Bhd | K One vs. Rubberex M |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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