Correlation Between K One and Carlsberg Brewery
Can any of the company-specific risk be diversified away by investing in both K One and Carlsberg Brewery 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 Carlsberg Brewery 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 Carlsberg Brewery Malaysia, you can compare the effects of market volatilities on K One and Carlsberg Brewery 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 Carlsberg Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and Carlsberg Brewery.
Diversification Opportunities for K One and Carlsberg Brewery
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0111 and Carlsberg is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and Carlsberg Brewery Malaysia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg Brewery 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 Carlsberg Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg Brewery has no effect on the direction of K One i.e., K One and Carlsberg Brewery go up and down completely randomly.
Pair Corralation between K One and Carlsberg Brewery
Assuming the 90 days trading horizon K One Technology Bhd is expected to under-perform the Carlsberg Brewery. In addition to that, K One is 6.18 times more volatile than Carlsberg Brewery Malaysia. It trades about -0.38 of its total potential returns per unit of risk. Carlsberg Brewery Malaysia is currently generating about -0.35 per unit of volatility. If you would invest 2,066 in Carlsberg Brewery Malaysia on November 5, 2024 and sell it today you would lose (82.00) from holding Carlsberg Brewery Malaysia or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
K One Technology Bhd vs. Carlsberg Brewery Malaysia
Performance |
| Timeline |
| K One Technology |
| Carlsberg Brewery |
K One and Carlsberg Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K One and Carlsberg Brewery
The main advantage of trading using opposite K One and Carlsberg Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K One position performs unexpectedly, Carlsberg Brewery 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 Carlsberg Brewery will offset losses from the drop in Carlsberg Brewery's long position.| K One vs. Uchi Technologies Bhd | K One vs. Digistar Bhd | K One vs. Minetech Resources Bhd | K One vs. OpenSys M Bhd |
| Carlsberg Brewery vs. Sapura Industrial Bhd | Carlsberg Brewery vs. Press Metal Bhd | Carlsberg Brewery vs. Mercury Industries Bhd | Carlsberg Brewery vs. Binasat Communications 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |