Correlation Between Kluang Rubber and Aeon Credit
Can any of the company-specific risk be diversified away by investing in both Kluang Rubber and Aeon Credit 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 Kluang Rubber and Aeon Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kluang Rubber and Aeon Credit Service, you can compare the effects of market volatilities on Kluang Rubber and Aeon Credit 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 Kluang Rubber with a short position of Aeon Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kluang Rubber and Aeon Credit.
Diversification Opportunities for Kluang Rubber and Aeon Credit
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kluang and Aeon is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kluang Rubber and Aeon Credit Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon Credit Service and Kluang Rubber 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 Kluang Rubber are associated (or correlated) with Aeon Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon Credit Service has no effect on the direction of Kluang Rubber i.e., Kluang Rubber and Aeon Credit go up and down completely randomly.
Pair Corralation between Kluang Rubber and Aeon Credit
Assuming the 90 days trading horizon Kluang Rubber is expected to generate 1.78 times more return on investment than Aeon Credit. However, Kluang Rubber is 1.78 times more volatile than Aeon Credit Service. It trades about -0.07 of its potential returns per unit of risk. Aeon Credit Service is currently generating about -0.17 per unit of risk. If you would invest 571.00 in Kluang Rubber on August 31, 2024 and sell it today you would lose (14.00) from holding Kluang Rubber or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kluang Rubber vs. Aeon Credit Service
Performance |
| Timeline |
| Kluang Rubber |
| Aeon Credit Service |
Kluang Rubber and Aeon Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kluang Rubber and Aeon Credit
The main advantage of trading using opposite Kluang Rubber and Aeon Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kluang Rubber position performs unexpectedly, Aeon Credit 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 Aeon Credit will offset losses from the drop in Aeon Credit's long position.| Kluang Rubber vs. Icon Offshore Bhd | Kluang Rubber vs. Press Metal Bhd | Kluang Rubber vs. Cosmos Technology International | Kluang Rubber vs. CPE Technology Berhad |
| Aeon Credit vs. FARM FRESH BERHAD | Aeon Credit vs. RHB Bank Bhd | Aeon Credit vs. Petronas Chemicals Group | Aeon Credit vs. Senheng New Retail |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |