Correlation Between Petronas Chemicals and Lotus KFM
Can any of the company-specific risk be diversified away by investing in both Petronas Chemicals and Lotus KFM 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 Petronas Chemicals and Lotus KFM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petronas Chemicals Group and Lotus KFM Bhd, you can compare the effects of market volatilities on Petronas Chemicals and Lotus KFM 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 Petronas Chemicals with a short position of Lotus KFM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petronas Chemicals and Lotus KFM.
Diversification Opportunities for Petronas Chemicals and Lotus KFM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Petronas and Lotus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Petronas Chemicals Group and Lotus KFM Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotus KFM Bhd and Petronas Chemicals 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 Petronas Chemicals Group are associated (or correlated) with Lotus KFM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotus KFM Bhd has no effect on the direction of Petronas Chemicals i.e., Petronas Chemicals and Lotus KFM go up and down completely randomly.
Pair Corralation between Petronas Chemicals and Lotus KFM
If you would invest (100.00) in Lotus KFM Bhd on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Lotus KFM Bhd or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Petronas Chemicals Group vs. Lotus KFM Bhd
Performance |
| Timeline |
| Petronas Chemicals |
| Lotus KFM Bhd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Petronas Chemicals and Lotus KFM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petronas Chemicals and Lotus KFM
The main advantage of trading using opposite Petronas Chemicals and Lotus KFM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petronas Chemicals position performs unexpectedly, Lotus KFM 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 Lotus KFM will offset losses from the drop in Lotus KFM's long position.| Petronas Chemicals vs. Press Metal Bhd | Petronas Chemicals vs. YX Precious Metals | Petronas Chemicals vs. Choo Bee Metal |
| Lotus KFM vs. Silver Ridge Holdings | Lotus KFM vs. Minetech Resources Bhd | Lotus KFM vs. CSC Steel Holdings | Lotus KFM vs. Rubberex M |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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