Correlation Between SSF Home and Kossan Rubber
Can any of the company-specific risk be diversified away by investing in both SSF Home and Kossan 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 SSF Home and Kossan Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSF Home Group and Kossan Rubber Industries, you can compare the effects of market volatilities on SSF Home and Kossan 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 SSF Home with a short position of Kossan Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSF Home and Kossan Rubber.
Diversification Opportunities for SSF Home and Kossan Rubber
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SSF and Kossan is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding SSF Home Group and Kossan Rubber Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kossan Rubber Industries and SSF Home 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 SSF Home Group are associated (or correlated) with Kossan Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kossan Rubber Industries has no effect on the direction of SSF Home i.e., SSF Home and Kossan Rubber go up and down completely randomly.
Pair Corralation between SSF Home and Kossan Rubber
If you would invest 214.00 in Kossan Rubber Industries on September 1, 2024 and sell it today you would earn a total of 34.00 from holding Kossan Rubber Industries or generate 15.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSF Home Group vs. Kossan Rubber Industries
Performance |
| Timeline |
| SSF Home Group |
| Kossan Rubber Industries |
SSF Home and Kossan Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSF Home and Kossan Rubber
The main advantage of trading using opposite SSF Home and Kossan Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSF Home position performs unexpectedly, Kossan 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 Kossan Rubber will offset losses from the drop in Kossan Rubber's long position.| SSF Home vs. Malayan Banking Bhd | SSF Home vs. Public Bank Bhd | SSF Home vs. Petronas Chemicals Group | SSF Home vs. Tenaga Nasional Bhd |
| Kossan Rubber vs. Kawan Food Bhd | Kossan Rubber vs. Kluang Rubber | Kossan Rubber vs. K One Technology Bhd | Kossan Rubber vs. Daya Materials 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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