Correlation Between K One and ViTrox Bhd
Can any of the company-specific risk be diversified away by investing in both K One and ViTrox Bhd 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 ViTrox Bhd 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 ViTrox Bhd, you can compare the effects of market volatilities on K One and ViTrox Bhd 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 ViTrox Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and ViTrox Bhd.
Diversification Opportunities for K One and ViTrox Bhd
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between 0111 and ViTrox is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and ViTrox Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ViTrox 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 ViTrox Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ViTrox Bhd has no effect on the direction of K One i.e., K One and ViTrox Bhd go up and down completely randomly.
Pair Corralation between K One and ViTrox Bhd
Assuming the 90 days trading horizon K One Technology Bhd is expected to generate 1.92 times more return on investment than ViTrox Bhd. However, K One is 1.92 times more volatile than ViTrox Bhd. It trades about 0.03 of its potential returns per unit of risk. ViTrox Bhd is currently generating about -0.03 per unit of risk. If you would invest 17.00 in K One Technology Bhd on September 3, 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. ViTrox Bhd
Performance |
| Timeline |
| K One Technology |
| ViTrox Bhd |
K One and ViTrox Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K One and ViTrox Bhd
The main advantage of trading using opposite K One and ViTrox Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K One position performs unexpectedly, ViTrox Bhd 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 ViTrox Bhd will offset losses from the drop in ViTrox Bhd's long position.| K One vs. Uchi Technologies Bhd | K One vs. Minetech Resources Bhd | K One vs. Swift Haulage Bhd | K One vs. Insas Bhd |
| ViTrox Bhd vs. Apollo Food Holdings | ViTrox Bhd vs. Computer Forms Bhd | ViTrox Bhd vs. K One Technology Bhd | ViTrox Bhd vs. Silver Ridge Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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