Correlation Between SFP Tech and K One
Can any of the company-specific risk be diversified away by investing in both SFP Tech and K One 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 SFP Tech and K One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SFP Tech Holdings and K One Technology Bhd, you can compare the effects of market volatilities on SFP Tech and K One 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 SFP Tech with a short position of K One. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFP Tech and K One.
Diversification Opportunities for SFP Tech and K One
Modest diversification
The 3 months correlation between SFP and 0111 is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding SFP Tech Holdings and K One Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K One Technology and SFP Tech 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 SFP Tech Holdings are associated (or correlated) with K One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K One Technology has no effect on the direction of SFP Tech i.e., SFP Tech and K One go up and down completely randomly.
Pair Corralation between SFP Tech and K One
Assuming the 90 days trading horizon SFP Tech Holdings is expected to generate 0.55 times more return on investment than K One. However, SFP Tech Holdings is 1.82 times less risky than K One. It trades about 0.19 of its potential returns per unit of risk. K One Technology Bhd is currently generating about 0.02 per unit of risk. If you would invest 61.00 in SFP Tech Holdings on September 3, 2024 and sell it today you would earn a total of 6.00 from holding SFP Tech Holdings or generate 9.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SFP Tech Holdings vs. K One Technology Bhd
Performance |
| Timeline |
| SFP Tech Holdings |
| K One Technology |
SFP Tech and K One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SFP Tech and K One
The main advantage of trading using opposite SFP Tech and K One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFP Tech position performs unexpectedly, K One 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 K One will offset losses from the drop in K One's long position.| SFP Tech vs. Malayan Banking Bhd | SFP Tech vs. Public Bank Bhd | SFP Tech vs. Petronas Chemicals Group | SFP Tech vs. Tenaga Nasional Bhd |
| K One vs. Uchi Technologies Bhd | K One vs. Minetech Resources Bhd | K One vs. Swift Haulage Bhd | K One vs. Insas 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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