Correlation Between Insas Bhd and K One
Can any of the company-specific risk be diversified away by investing in both Insas Bhd 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 Insas Bhd and K One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insas Bhd and K One Technology Bhd, you can compare the effects of market volatilities on Insas Bhd 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 Insas Bhd with a short position of K One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insas Bhd and K One.
Diversification Opportunities for Insas Bhd and K One
Modest diversification
The 3 months correlation between Insas and 0111 is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Insas Bhd 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 Insas Bhd 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 Insas Bhd 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 Insas Bhd i.e., Insas Bhd and K One go up and down completely randomly.
Pair Corralation between Insas Bhd and K One
Assuming the 90 days trading horizon Insas Bhd is expected to generate 2.51 times less return on investment than K One. But when comparing it to its historical volatility, Insas Bhd is 2.8 times less risky than K One. It trades about 0.03 of its potential returns per unit of risk. K One Technology Bhd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 15.00 in K One Technology Bhd on September 3, 2024 and sell it today you would earn a total of 2.00 from holding K One Technology Bhd or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insas Bhd vs. K One Technology Bhd
Performance |
| Timeline |
| Insas Bhd |
| K One Technology |
Insas Bhd and K One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insas Bhd and K One
The main advantage of trading using opposite Insas Bhd and K One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insas Bhd 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.| Insas Bhd vs. Farm Price Holdings | Insas Bhd vs. MyTech Group Bhd | Insas Bhd vs. Star Media Group | Insas Bhd vs. Magni Tech Industries |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |