Correlation Between K One and EA Technique
Can any of the company-specific risk be diversified away by investing in both K One and EA Technique 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 EA Technique 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 EA Technique M, you can compare the effects of market volatilities on K One and EA Technique 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 EA Technique. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and EA Technique.
Diversification Opportunities for K One and EA Technique
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between 0111 and 5259 is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and EA Technique M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Technique M 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 EA Technique. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Technique M has no effect on the direction of K One i.e., K One and EA Technique go up and down completely randomly.
Pair Corralation between K One and EA Technique
Assuming the 90 days trading horizon K One is expected to generate 1.68 times less return on investment than EA Technique. But when comparing it to its historical volatility, K One Technology Bhd is 1.19 times less risky than EA Technique. It trades about 0.03 of its potential returns per unit of risk. EA Technique M is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 25.00 in EA Technique M on November 4, 2024 and sell it today you would earn a total of 6.00 from holding EA Technique M or generate 24.0% 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. EA Technique M
Performance |
| Timeline |
| K One Technology |
| EA Technique M |
K One and EA Technique Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K One and EA Technique
The main advantage of trading using opposite K One and EA Technique positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K One position performs unexpectedly, EA Technique 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 EA Technique will offset losses from the drop in EA Technique's long position.| K One vs. Sungei Bagan Rubber | K One vs. IHH Healthcare Bhd | K One vs. Sports Toto Berhad | K One vs. Datasonic Group Bhd |
| EA Technique vs. CB Industrial Product | EA Technique vs. Choo Bee Metal | EA Technique vs. Kawan Food Bhd | EA Technique vs. Sapura Industrial 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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