Correlation Between Silver Ridge and Kluang Rubber
Can any of the company-specific risk be diversified away by investing in both Silver Ridge and Kluang Rubber 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 Silver Ridge and Kluang Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Ridge Holdings and Kluang Rubber, you can compare the effects of market volatilities on Silver Ridge and Kluang Rubber 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 Silver Ridge with a short position of Kluang Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Ridge and Kluang Rubber.
Diversification Opportunities for Silver Ridge and Kluang Rubber
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Silver and Kluang is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Silver Ridge Holdings and Kluang Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kluang Rubber and Silver Ridge 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 Silver Ridge Holdings are associated (or correlated) with Kluang Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kluang Rubber has no effect on the direction of Silver Ridge i.e., Silver Ridge and Kluang Rubber go up and down completely randomly.
Pair Corralation between Silver Ridge and Kluang Rubber
Assuming the 90 days trading horizon Silver Ridge Holdings is expected to generate 1.24 times more return on investment than Kluang Rubber. However, Silver Ridge is 1.24 times more volatile than Kluang Rubber. It trades about 0.45 of its potential returns per unit of risk. Kluang Rubber is currently generating about 0.09 per unit of risk. If you would invest 51.00 in Silver Ridge Holdings on September 4, 2024 and sell it today you would earn a total of 13.00 from holding Silver Ridge Holdings or generate 25.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Silver Ridge Holdings vs. Kluang Rubber
Performance |
| Timeline |
| Silver Ridge Holdings |
| Kluang Rubber |
Silver Ridge and Kluang Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Ridge and Kluang Rubber
The main advantage of trading using opposite Silver Ridge and Kluang Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Ridge position performs unexpectedly, Kluang Rubber 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 Kluang Rubber will offset losses from the drop in Kluang Rubber's long position.| Silver Ridge vs. MClean Technologies Bhd | Silver Ridge vs. Aeon Credit Service | Silver Ridge vs. Radiant Globaltech Bhd | Silver Ridge vs. SFP Tech Holdings |
| Kluang Rubber vs. Aurelius Technologies Bhd | Kluang Rubber vs. Sungei Bagan Rubber | Kluang Rubber vs. MClean Technologies Bhd | Kluang Rubber vs. Eversafe Rubber 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |