Correlation Between K One and Kluang Rubber
Can any of the company-specific risk be diversified away by investing in both K One and Kluang Rubber 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 Kluang Rubber 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 Kluang Rubber, you can compare the effects of market volatilities on K One and Kluang Rubber 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 Kluang Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and Kluang Rubber.
Diversification Opportunities for K One and Kluang Rubber
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between 0111 and Kluang is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and Kluang Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kluang Rubber 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 Kluang Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kluang Rubber has no effect on the direction of K One i.e., K One and Kluang Rubber go up and down completely randomly.
Pair Corralation between K One and Kluang Rubber
Assuming the 90 days trading horizon K One Technology Bhd is expected to under-perform the Kluang Rubber. In addition to that, K One is 6.03 times more volatile than Kluang Rubber. It trades about -0.35 of its total potential returns per unit of risk. Kluang Rubber is currently generating about 0.14 per unit of volatility. If you would invest 570.00 in Kluang Rubber on November 3, 2024 and sell it today you would earn a total of 10.00 from holding Kluang Rubber or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
K One Technology Bhd vs. Kluang Rubber
Performance |
| Timeline |
| K One Technology |
| Kluang Rubber |
K One and Kluang Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K One and Kluang Rubber
The main advantage of trading using opposite K One and Kluang Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K One position performs unexpectedly, Kluang Rubber 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 Kluang Rubber will offset losses from the drop in Kluang Rubber'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 |
| Kluang Rubber vs. Radiant Globaltech Bhd | Kluang Rubber vs. Star Media Group | Kluang Rubber vs. Cosmos Technology International | Kluang Rubber vs. MI Technovation 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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