Correlation Between Media Prima and K One
Can any of the company-specific risk be diversified away by investing in both Media Prima 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 Media Prima and K One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media Prima Bhd and K One Technology Bhd, you can compare the effects of market volatilities on Media Prima 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 Media Prima with a short position of K One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media Prima and K One.
Diversification Opportunities for Media Prima and K One
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Media and 0111 is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Media Prima 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 Media Prima 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 Media Prima 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 Media Prima i.e., Media Prima and K One go up and down completely randomly.
Pair Corralation between Media Prima and K One
Assuming the 90 days trading horizon Media Prima Bhd is expected to generate 0.37 times more return on investment than K One. However, Media Prima Bhd is 2.74 times less risky than K One. It trades about 0.01 of its potential returns per unit of risk. K One Technology Bhd is currently generating about -0.38 per unit of risk. If you would invest 47.00 in Media Prima Bhd on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Media Prima Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Media Prima Bhd vs. K One Technology Bhd
Performance |
| Timeline |
| Media Prima Bhd |
| K One Technology |
Media Prima and K One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media Prima and K One
The main advantage of trading using opposite Media Prima and K One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media Prima 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.| Media Prima vs. Cengild Medical Berhad | Media Prima vs. Southern Steel Bhd | Media Prima vs. CB Industrial Product | Media Prima vs. Mycron Steel Bhd |
| K One vs. Uchi Technologies Bhd | K One vs. Digistar Bhd | K One vs. Minetech Resources Bhd | K One vs. OpenSys M 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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