Correlation Between K One and Cosmos Technology
Can any of the company-specific risk be diversified away by investing in both K One and Cosmos Technology 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 Cosmos Technology 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 Cosmos Technology International, you can compare the effects of market volatilities on K One and Cosmos Technology 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 Cosmos Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and Cosmos Technology.
Diversification Opportunities for K One and Cosmos Technology
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 0111 and Cosmos is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and Cosmos Technology Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos Technology 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 Cosmos Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos Technology has no effect on the direction of K One i.e., K One and Cosmos Technology go up and down completely randomly.
Pair Corralation between K One and Cosmos Technology
Assuming the 90 days trading horizon K One Technology Bhd is expected to under-perform the Cosmos Technology. In addition to that, K One is 1.66 times more volatile than Cosmos Technology International. It trades about -0.36 of its total potential returns per unit of risk. Cosmos Technology International is currently generating about -0.21 per unit of volatility. If you would invest 43.00 in Cosmos Technology International on November 4, 2024 and sell it today you would lose (4.00) from holding Cosmos Technology International or give up 9.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
K One Technology Bhd vs. Cosmos Technology Internationa
Performance |
| Timeline |
| K One Technology |
| Cosmos Technology |
K One and Cosmos Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K One and Cosmos Technology
The main advantage of trading using opposite K One and Cosmos Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K One position performs unexpectedly, Cosmos Technology 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 Cosmos Technology will offset losses from the drop in Cosmos Technology's long position.| K One vs. Sungei Bagan Rubber | K One vs. IHH Healthcare Bhd | K One vs. Sports Toto Berhad | K One vs. Datasonic Group Bhd |
| Cosmos Technology vs. Farm Price Holdings | Cosmos Technology vs. Uchi Technologies Bhd | Cosmos Technology vs. ES Ceramics Technology | Cosmos Technology 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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