Correlation Between K One and Sungei Bagan
Can any of the company-specific risk be diversified away by investing in both K One and Sungei Bagan 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 Sungei Bagan 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 Sungei Bagan Rubber, you can compare the effects of market volatilities on K One and Sungei Bagan 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 Sungei Bagan. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and Sungei Bagan.
Diversification Opportunities for K One and Sungei Bagan
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between 0111 and Sungei is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and Sungei Bagan Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungei Bagan 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 Sungei Bagan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungei Bagan Rubber has no effect on the direction of K One i.e., K One and Sungei Bagan go up and down completely randomly.
Pair Corralation between K One and Sungei Bagan
Assuming the 90 days trading horizon K One Technology Bhd is expected to under-perform the Sungei Bagan. In addition to that, K One is 4.86 times more volatile than Sungei Bagan Rubber. It trades about -0.02 of its total potential returns per unit of risk. Sungei Bagan Rubber is currently generating about -0.08 per unit of volatility. If you would invest 593.00 in Sungei Bagan Rubber on September 3, 2024 and sell it today you would lose (27.00) from holding Sungei Bagan Rubber or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
K One Technology Bhd vs. Sungei Bagan Rubber
Performance |
| Timeline |
| K One Technology |
| Sungei Bagan Rubber |
K One and Sungei Bagan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K One and Sungei Bagan
The main advantage of trading using opposite K One and Sungei Bagan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K One position performs unexpectedly, Sungei Bagan 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 Sungei Bagan will offset losses from the drop in Sungei Bagan'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 |
| Sungei Bagan vs. British American Tobacco | Sungei Bagan vs. FARM FRESH BERHAD | Sungei Bagan vs. Apollo Food Holdings | Sungei Bagan vs. Oriental Food Industries |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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