Correlation Between CHRYSALIS INVESTMENTS and Keck Seng
Can any of the company-specific risk be diversified away by investing in both CHRYSALIS INVESTMENTS and Keck Seng 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 CHRYSALIS INVESTMENTS and Keck Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHRYSALIS INVESTMENTS LTD and Keck Seng Investments, you can compare the effects of market volatilities on CHRYSALIS INVESTMENTS and Keck Seng 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 CHRYSALIS INVESTMENTS with a short position of Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHRYSALIS INVESTMENTS and Keck Seng.
Diversification Opportunities for CHRYSALIS INVESTMENTS and Keck Seng
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CHRYSALIS and Keck is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding CHRYSALIS INVESTMENTS LTD and Keck Seng Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keck Seng Investments and CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS LTD are associated (or correlated) with Keck Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keck Seng Investments has no effect on the direction of CHRYSALIS INVESTMENTS i.e., CHRYSALIS INVESTMENTS and Keck Seng go up and down completely randomly.
Pair Corralation between CHRYSALIS INVESTMENTS and Keck Seng
Assuming the 90 days horizon CHRYSALIS INVESTMENTS LTD is expected to generate 0.44 times more return on investment than Keck Seng. However, CHRYSALIS INVESTMENTS LTD is 2.26 times less risky than Keck Seng. It trades about 0.16 of its potential returns per unit of risk. Keck Seng Investments is currently generating about 0.05 per unit of risk. If you would invest 102.00 in CHRYSALIS INVESTMENTS LTD on November 6, 2024 and sell it today you would earn a total of 18.00 from holding CHRYSALIS INVESTMENTS LTD or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHRYSALIS INVESTMENTS LTD vs. Keck Seng Investments
Performance |
| Timeline |
| CHRYSALIS INVESTMENTS LTD |
| Keck Seng Investments |
CHRYSALIS INVESTMENTS and Keck Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHRYSALIS INVESTMENTS and Keck Seng
The main advantage of trading using opposite CHRYSALIS INVESTMENTS and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHRYSALIS INVESTMENTS position performs unexpectedly, Keck Seng 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 Keck Seng will offset losses from the drop in Keck Seng's long position.The idea behind CHRYSALIS INVESTMENTS LTD and Keck Seng Investments pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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