Correlation Between K One and TAS Offshore
Can any of the company-specific risk be diversified away by investing in both K One and TAS Offshore 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 TAS Offshore 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 TAS Offshore Bhd, you can compare the effects of market volatilities on K One and TAS Offshore 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 TAS Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and TAS Offshore.
Diversification Opportunities for K One and TAS Offshore
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 0111 and TAS is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and TAS Offshore Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAS Offshore Bhd 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 TAS Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAS Offshore Bhd has no effect on the direction of K One i.e., K One and TAS Offshore go up and down completely randomly.
Pair Corralation between K One and TAS Offshore
Assuming the 90 days trading horizon K One Technology Bhd is expected to generate 4.04 times more return on investment than TAS Offshore. However, K One is 4.04 times more volatile than TAS Offshore Bhd. It trades about 0.08 of its potential returns per unit of risk. TAS Offshore Bhd is currently generating about -0.17 per unit of risk. If you would invest 17.00 in K One Technology Bhd on September 12, 2024 and sell it today you would earn a total of 1.00 from holding K One Technology Bhd or generate 5.88% 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. TAS Offshore Bhd
Performance |
| Timeline |
| K One Technology |
| TAS Offshore Bhd |
K One and TAS Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K One and TAS Offshore
The main advantage of trading using opposite K One and TAS Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K One position performs unexpectedly, TAS Offshore 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 TAS Offshore will offset losses from the drop in TAS Offshore's long position.| K One vs. Cloudpoint Technology Berhad | K One vs. Apex Healthcare Bhd | K One vs. Senheng New Retail | K One vs. Awanbiru Technology Bhd |
| TAS Offshore vs. Dufu Tech Corp | TAS Offshore vs. RHB Bank Bhd | TAS Offshore vs. MClean Technologies Bhd | TAS Offshore vs. K One Technology 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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