Correlation Between MClean Technologies and Kamdar Group
Can any of the company-specific risk be diversified away by investing in both MClean Technologies and Kamdar 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 MClean Technologies and Kamdar Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MClean Technologies Bhd and Kamdar Group Bhd, you can compare the effects of market volatilities on MClean Technologies and Kamdar 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 MClean Technologies with a short position of Kamdar Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MClean Technologies and Kamdar Group.
Diversification Opportunities for MClean Technologies and Kamdar Group
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between MClean and Kamdar is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding MClean Technologies Bhd and Kamdar Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamdar Group Bhd and MClean Technologies 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 MClean Technologies Bhd are associated (or correlated) with Kamdar Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamdar Group Bhd has no effect on the direction of MClean Technologies i.e., MClean Technologies and Kamdar Group go up and down completely randomly.
Pair Corralation between MClean Technologies and Kamdar Group
Assuming the 90 days trading horizon MClean Technologies Bhd is expected to generate 1.28 times more return on investment than Kamdar Group. However, MClean Technologies is 1.28 times more volatile than Kamdar Group Bhd. It trades about 0.04 of its potential returns per unit of risk. Kamdar Group Bhd is currently generating about 0.01 per unit of risk. If you would invest 26.00 in MClean Technologies Bhd on September 13, 2024 and sell it today you would earn a total of 2.00 from holding MClean Technologies Bhd or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MClean Technologies Bhd vs. Kamdar Group Bhd
Performance |
| Timeline |
| MClean Technologies Bhd |
| Kamdar Group Bhd |
MClean Technologies and Kamdar Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MClean Technologies and Kamdar Group
The main advantage of trading using opposite MClean Technologies and Kamdar Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MClean Technologies position performs unexpectedly, Kamdar 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 Kamdar Group will offset losses from the drop in Kamdar Group's long position.| MClean Technologies vs. Berjaya Food Bhd | MClean Technologies vs. Supercomnet Technologies Bhd | MClean Technologies vs. JF Technology BHD | MClean Technologies vs. Cloudpoint Technology Berhad |
| Kamdar Group vs. Cloudpoint Technology Berhad | Kamdar Group vs. Apollo Food Holdings | Kamdar Group vs. Carlsberg Brewery Malaysia | Kamdar Group vs. Riverview Rubber Estates |
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.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |