Correlation Between Magni Tech and K One
Can any of the company-specific risk be diversified away by investing in both Magni Tech 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 Magni Tech and K One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magni Tech Industries and K One Technology Bhd, you can compare the effects of market volatilities on Magni Tech 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 Magni Tech with a short position of K One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magni Tech and K One.
Diversification Opportunities for Magni Tech and K One
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Magni and 0111 is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Magni Tech Industries 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 Magni 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 Magni Tech Industries 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 Magni Tech i.e., Magni Tech and K One go up and down completely randomly.
Pair Corralation between Magni Tech and K One
Assuming the 90 days trading horizon Magni Tech Industries is expected to generate 0.3 times more return on investment than K One. However, Magni Tech Industries is 3.33 times less risky than K One. It trades about -0.02 of its potential returns per unit of risk. K One Technology Bhd is currently generating about -0.03 per unit of risk. If you would invest 250.00 in Magni Tech Industries on October 20, 2024 and sell it today you would lose (2.00) from holding Magni Tech Industries or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magni Tech Industries vs. K One Technology Bhd
Performance |
| Timeline |
| Magni Tech Industries |
| K One Technology |
Magni Tech and K One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magni Tech and K One
The main advantage of trading using opposite Magni Tech and K One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magni Tech 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.| Magni Tech vs. Lyc Healthcare Bhd | Magni Tech vs. MI Technovation Bhd | Magni Tech vs. Radiant Globaltech Bhd | Magni Tech vs. CPE Technology Berhad |
| K One vs. Uchi Technologies Bhd | K One vs. FARM FRESH BERHAD | K One vs. Top Glove | K One vs. Genetec Technology 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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