Correlation Between Kluang Rubber and Choo Bee
Can any of the company-specific risk be diversified away by investing in both Kluang Rubber and Choo Bee 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 Choo Bee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kluang Rubber and Choo Bee Metal, you can compare the effects of market volatilities on Kluang Rubber and Choo Bee 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 Choo Bee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kluang Rubber and Choo Bee.
Diversification Opportunities for Kluang Rubber and Choo Bee
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kluang and Choo is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kluang Rubber and Choo Bee Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choo Bee Metal 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 Choo Bee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choo Bee Metal has no effect on the direction of Kluang Rubber i.e., Kluang Rubber and Choo Bee go up and down completely randomly.
Pair Corralation between Kluang Rubber and Choo Bee
Assuming the 90 days trading horizon Kluang Rubber is expected to generate 0.38 times more return on investment than Choo Bee. However, Kluang Rubber is 2.64 times less risky than Choo Bee. It trades about 0.14 of its potential returns per unit of risk. Choo Bee Metal is currently generating about 0.01 per unit of risk. If you would invest 570.00 in Kluang Rubber on November 3, 2024 and sell it today you would earn a total of 10.00 from holding Kluang Rubber or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kluang Rubber vs. Choo Bee Metal
Performance |
| Timeline |
| Kluang Rubber |
| Choo Bee Metal |
Kluang Rubber and Choo Bee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kluang Rubber and Choo Bee
The main advantage of trading using opposite Kluang Rubber and Choo Bee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kluang Rubber position performs unexpectedly, Choo Bee 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 Choo Bee will offset losses from the drop in Choo Bee's long position.| Kluang Rubber vs. Radiant Globaltech Bhd | Kluang Rubber vs. Star Media Group | Kluang Rubber vs. Cosmos Technology International | Kluang Rubber vs. MI Technovation Bhd |
| Choo Bee vs. Dufu Tech Corp | Choo Bee vs. Computer Forms Bhd | Choo Bee vs. Rubberex M | Choo Bee vs. SFP Tech Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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