Correlation Between K One and SSF Home
Can any of the company-specific risk be diversified away by investing in both K One and SSF Home 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 SSF Home 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 SSF Home Group, you can compare the effects of market volatilities on K One and SSF Home 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 SSF Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and SSF Home.
Diversification Opportunities for K One and SSF Home
Significant diversification
The 3 months correlation between 0111 and SSF is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and SSF Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSF Home Group 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 SSF Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSF Home Group has no effect on the direction of K One i.e., K One and SSF Home go up and down completely randomly.
Pair Corralation between K One and SSF Home
Assuming the 90 days trading horizon K One Technology Bhd is expected to under-perform the SSF Home. In addition to that, K One is 1.62 times more volatile than SSF Home Group. It trades about -0.35 of its total potential returns per unit of risk. SSF Home Group is currently generating about 0.13 per unit of volatility. If you would invest 35.00 in SSF Home Group on November 3, 2024 and sell it today you would earn a total of 2.00 from holding SSF Home Group or generate 5.71% 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. SSF Home Group
Performance |
| Timeline |
| K One Technology |
| SSF Home Group |
K One and SSF Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K One and SSF Home
The main advantage of trading using opposite K One and SSF Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K One position performs unexpectedly, SSF Home 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 SSF Home will offset losses from the drop in SSF Home's long position.| K One vs. Impiana Hotels Bhd | K One vs. Dufu Tech Corp | K One vs. Choo Bee Metal | K One vs. SFP Tech Holdings |
| SSF Home vs. Eonmetall Group Bhd | SSF Home vs. Sports Toto Berhad | SSF Home vs. Malaysia Steel Works | SSF Home vs. Apex Healthcare 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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