Correlation Between Hengyuan Refining and Keck Seng
Can any of the company-specific risk be diversified away by investing in both Hengyuan Refining 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 Hengyuan Refining and Keck Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hengyuan Refining and Keck Seng Malaysia, you can compare the effects of market volatilities on Hengyuan Refining 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 Hengyuan Refining with a short position of Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengyuan Refining and Keck Seng.
Diversification Opportunities for Hengyuan Refining and Keck Seng
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hengyuan and Keck is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hengyuan Refining and Keck Seng Malaysia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keck Seng Malaysia and Hengyuan Refining 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 Hengyuan Refining 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 Malaysia has no effect on the direction of Hengyuan Refining i.e., Hengyuan Refining and Keck Seng go up and down completely randomly.
Pair Corralation between Hengyuan Refining and Keck Seng
Assuming the 90 days trading horizon Hengyuan Refining is expected to under-perform the Keck Seng. In addition to that, Hengyuan Refining is 2.21 times more volatile than Keck Seng Malaysia. It trades about -0.05 of its total potential returns per unit of risk. Keck Seng Malaysia is currently generating about 0.08 per unit of volatility. If you would invest 448.00 in Keck Seng Malaysia on September 4, 2024 and sell it today you would earn a total of 123.00 from holding Keck Seng Malaysia or generate 27.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengyuan Refining vs. Keck Seng Malaysia
Performance |
| Timeline |
| Hengyuan Refining |
| Keck Seng Malaysia |
Hengyuan Refining and Keck Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengyuan Refining and Keck Seng
The main advantage of trading using opposite Hengyuan Refining and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengyuan Refining 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.| Hengyuan Refining vs. K One Technology Bhd | Hengyuan Refining vs. Icon Offshore Bhd | Hengyuan Refining vs. Cosmos Technology International | Hengyuan Refining vs. Homeritz Bhd |
| Keck Seng vs. Uchi Technologies Bhd | Keck Seng vs. Press Metal Bhd | Keck Seng vs. Alliance Financial Group | Keck Seng vs. Choo Bee Metal |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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