Correlation Between K One and Kawan Food
Can any of the company-specific risk be diversified away by investing in both K One and Kawan Food 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 Kawan Food 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 Kawan Food Bhd, you can compare the effects of market volatilities on K One and Kawan Food 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 Kawan Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and Kawan Food.
Diversification Opportunities for K One and Kawan Food
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between 0111 and Kawan is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and Kawan Food Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kawan Food 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 Kawan Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kawan Food Bhd has no effect on the direction of K One i.e., K One and Kawan Food go up and down completely randomly.
Pair Corralation between K One and Kawan Food
Assuming the 90 days trading horizon K One Technology Bhd is expected to generate 3.37 times more return on investment than Kawan Food. However, K One is 3.37 times more volatile than Kawan Food Bhd. It trades about 0.03 of its potential returns per unit of risk. Kawan Food Bhd is currently generating about -0.03 per unit of risk. If you would invest 16.00 in K One Technology Bhd on October 30, 2024 and sell it today you would earn a total of 0.00 from holding K One Technology Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
K One Technology Bhd vs. Kawan Food Bhd
Performance |
| Timeline |
| K One Technology |
| Kawan Food Bhd |
K One and Kawan Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K One and Kawan Food
The main advantage of trading using opposite K One and Kawan Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K One position performs unexpectedly, Kawan Food 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 Kawan Food will offset losses from the drop in Kawan Food's long position.| K One vs. Uchi Technologies Bhd | K One vs. Nexgram Holdings Bhd | K One vs. Digistar Bhd | K One vs. AirAsia X Bhd |
| Kawan Food vs. Press Metal Bhd | Kawan Food vs. YX Precious Metals | Kawan Food vs. CSC Steel Holdings | Kawan Food vs. Rubberex M |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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