Correlation Between K One and Lyc Healthcare
Can any of the company-specific risk be diversified away by investing in both K One and Lyc Healthcare 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 Lyc Healthcare 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 Lyc Healthcare Bhd, you can compare the effects of market volatilities on K One and Lyc Healthcare 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 Lyc Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and Lyc Healthcare.
Diversification Opportunities for K One and Lyc Healthcare
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0111 and Lyc is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and Lyc Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyc Healthcare Bhd 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 Lyc Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyc Healthcare Bhd has no effect on the direction of K One i.e., K One and Lyc Healthcare go up and down completely randomly.
Pair Corralation between K One and Lyc Healthcare
Assuming the 90 days trading horizon K One Technology Bhd is expected to under-perform the Lyc Healthcare. In addition to that, K One is 1.22 times more volatile than Lyc Healthcare Bhd. It trades about -0.36 of its total potential returns per unit of risk. Lyc Healthcare Bhd is currently generating about -0.18 per unit of volatility. If you would invest 10.00 in Lyc Healthcare Bhd on November 7, 2024 and sell it today you would lose (1.00) from holding Lyc Healthcare Bhd or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
K One Technology Bhd vs. Lyc Healthcare Bhd
Performance |
| Timeline |
| K One Technology |
| Lyc Healthcare Bhd |
K One and Lyc Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K One and Lyc Healthcare
The main advantage of trading using opposite K One and Lyc Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K One position performs unexpectedly, Lyc Healthcare 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 Lyc Healthcare will offset losses from the drop in Lyc Healthcare's long position.| K One vs. Tex Cycle Technology | K One vs. Silver Ridge Holdings | K One vs. Apex Healthcare Bhd | K One vs. Al Aqar Healthcare |
| Lyc Healthcare vs. IHH Healthcare Bhd | Lyc Healthcare vs. KPJ Healthcare Bhd | Lyc Healthcare vs. Apollo Food Holdings | Lyc Healthcare vs. Uwc 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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