Correlation Between Sunway Construction and K One
Can any of the company-specific risk be diversified away by investing in both Sunway Construction 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 Sunway Construction and K One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunway Construction Group and K One Technology Bhd, you can compare the effects of market volatilities on Sunway Construction 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 Sunway Construction with a short position of K One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunway Construction and K One.
Diversification Opportunities for Sunway Construction and K One
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunway and 0111 is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Sunway Construction Group 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 Sunway Construction 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 Sunway Construction Group 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 Sunway Construction i.e., Sunway Construction and K One go up and down completely randomly.
Pair Corralation between Sunway Construction and K One
Assuming the 90 days trading horizon Sunway Construction Group is expected to generate 0.43 times more return on investment than K One. However, Sunway Construction Group is 2.32 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 0.02 per unit of risk. If you would invest 415.00 in Sunway Construction Group on September 2, 2024 and sell it today you would earn a total of 15.00 from holding Sunway Construction Group or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunway Construction Group vs. K One Technology Bhd
Performance |
| Timeline |
| Sunway Construction |
| K One Technology |
Sunway Construction and K One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunway Construction and K One
The main advantage of trading using opposite Sunway Construction and K One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunway Construction 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.| Sunway Construction vs. Rubberex M | Sunway Construction vs. SSF Home Group | Sunway Construction vs. Homeritz Bhd | Sunway Construction vs. Senheng New Retail |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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