Correlation Between Awanbiru Technology and K One
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology 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 Awanbiru Technology and K One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awanbiru Technology Bhd and K One Technology Bhd, you can compare the effects of market volatilities on Awanbiru Technology 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 Awanbiru Technology with a short position of K One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and K One.
Diversification Opportunities for Awanbiru Technology and K One
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Awanbiru and 0111 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology 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 Awanbiru Technology 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 Awanbiru Technology 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 Awanbiru Technology i.e., Awanbiru Technology and K One go up and down completely randomly.
Pair Corralation between Awanbiru Technology and K One
Assuming the 90 days trading horizon Awanbiru Technology is expected to generate 1.94 times less return on investment than K One. But when comparing it to its historical volatility, Awanbiru Technology Bhd is 1.43 times less risky than K One. It trades about 0.09 of its potential returns per unit of risk. K One Technology Bhd is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 17.00 in K One Technology Bhd on September 13, 2024 and sell it today you would earn a total of 2.00 from holding K One Technology Bhd or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awanbiru Technology Bhd vs. K One Technology Bhd
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| K One Technology |
Awanbiru Technology and K One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and K One
The main advantage of trading using opposite Awanbiru Technology and K One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology 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.| Awanbiru Technology vs. Datasonic Group Bhd | Awanbiru Technology vs. Dataprep Holdings Bhd | Awanbiru Technology vs. Systech Bhd | Awanbiru Technology vs. TechnoDex Bhd |
| K One vs. Uchi Technologies Bhd | K One vs. Al Aqar Healthcare | K One vs. PMB Technology Bhd | K One vs. Digistar 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 Stocks Directory module to find actively traded stocks across global markets.
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