Correlation Between Kobay Tech and Aeon Credit
Can any of the company-specific risk be diversified away by investing in both Kobay Tech and Aeon Credit 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 Kobay Tech and Aeon Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kobay Tech Bhd and Aeon Credit Service, you can compare the effects of market volatilities on Kobay Tech and Aeon Credit 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 Kobay Tech with a short position of Aeon Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kobay Tech and Aeon Credit.
Diversification Opportunities for Kobay Tech and Aeon Credit
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kobay and Aeon is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kobay Tech Bhd and Aeon Credit Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon Credit Service and Kobay Tech 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 Kobay Tech Bhd are associated (or correlated) with Aeon Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon Credit Service has no effect on the direction of Kobay Tech i.e., Kobay Tech and Aeon Credit go up and down completely randomly.
Pair Corralation between Kobay Tech and Aeon Credit
Assuming the 90 days trading horizon Kobay Tech Bhd is expected to under-perform the Aeon Credit. In addition to that, Kobay Tech is 3.39 times more volatile than Aeon Credit Service. It trades about -0.04 of its total potential returns per unit of risk. Aeon Credit Service is currently generating about -0.09 per unit of volatility. If you would invest 662.00 in Aeon Credit Service on November 3, 2024 and sell it today you would lose (77.00) from holding Aeon Credit Service or give up 11.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kobay Tech Bhd vs. Aeon Credit Service
Performance |
| Timeline |
| Kobay Tech Bhd |
| Aeon Credit Service |
Kobay Tech and Aeon Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kobay Tech and Aeon Credit
The main advantage of trading using opposite Kobay Tech and Aeon Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kobay Tech position performs unexpectedly, Aeon Credit 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 Aeon Credit will offset losses from the drop in Aeon Credit's long position.| Kobay Tech vs. Kluang Rubber | Kobay Tech vs. Binasat Communications Bhd | Kobay Tech vs. Computer Forms Bhd | Kobay Tech vs. Public Bank Bhd |
| Aeon Credit vs. Petronas Chemicals Group | Aeon Credit vs. Cloudpoint Technology Berhad | Aeon Credit vs. Dufu Tech Corp | Aeon Credit vs. Dnonce Tech 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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