Correlation Between K One and Eonmetall Group
Can any of the company-specific risk be diversified away by investing in both K One and Eonmetall Group 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 Eonmetall Group 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 Eonmetall Group Bhd, you can compare the effects of market volatilities on K One and Eonmetall Group 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 Eonmetall Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and Eonmetall Group.
Diversification Opportunities for K One and Eonmetall Group
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0111 and Eonmetall is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and Eonmetall Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eonmetall Group 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 Eonmetall Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eonmetall Group Bhd has no effect on the direction of K One i.e., K One and Eonmetall Group go up and down completely randomly.
Pair Corralation between K One and Eonmetall Group
Assuming the 90 days trading horizon K One Technology Bhd is expected to generate 1.28 times more return on investment than Eonmetall Group. However, K One is 1.28 times more volatile than Eonmetall Group Bhd. It trades about -0.03 of its potential returns per unit of risk. Eonmetall Group Bhd is currently generating about -0.11 per unit of risk. If you would invest 18.00 in K One Technology Bhd on October 25, 2024 and sell it today you would lose (1.00) from holding K One Technology Bhd or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
K One Technology Bhd vs. Eonmetall Group Bhd
Performance |
| Timeline |
| K One Technology |
| Eonmetall Group Bhd |
K One and Eonmetall Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K One and Eonmetall Group
The main advantage of trading using opposite K One and Eonmetall Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K One position performs unexpectedly, Eonmetall Group 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 Eonmetall Group will offset losses from the drop in Eonmetall Group's long position.| K One vs. Eonmetall Group Bhd | K One vs. Leader Steel Holdings | K One vs. Central Industrial Corp | K One vs. YX Precious Metals |
| Eonmetall Group vs. Star Media Group | Eonmetall Group vs. K One Technology Bhd | Eonmetall Group vs. CPE Technology Berhad | Eonmetall Group 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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