Correlation Between Uchi Technologies and K One
Can any of the company-specific risk be diversified away by investing in both Uchi Technologies 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 Uchi Technologies and K One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uchi Technologies Bhd and K One Technology Bhd, you can compare the effects of market volatilities on Uchi Technologies 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 Uchi Technologies with a short position of K One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uchi Technologies and K One.
Diversification Opportunities for Uchi Technologies and K One
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uchi and 0111 is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Uchi Technologies 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 Uchi Technologies 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 Uchi Technologies 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 Uchi Technologies i.e., Uchi Technologies and K One go up and down completely randomly.
Pair Corralation between Uchi Technologies and K One
Assuming the 90 days trading horizon Uchi Technologies is expected to generate 3.98 times less return on investment than K One. But when comparing it to its historical volatility, Uchi Technologies Bhd is 5.15 times less risky than K One. It trades about 0.05 of its potential returns per unit of risk. K One Technology Bhd is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 14.00 in K One Technology Bhd on September 2, 2024 and sell it today you would earn a total of 3.00 from holding K One Technology Bhd or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uchi Technologies Bhd vs. K One Technology Bhd
Performance |
| Timeline |
| Uchi Technologies Bhd |
| K One Technology |
Uchi Technologies and K One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uchi Technologies and K One
The main advantage of trading using opposite Uchi Technologies and K One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uchi Technologies 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.| Uchi Technologies vs. K One Technology Bhd | Uchi Technologies vs. Digistar Bhd | Uchi Technologies vs. AirAsia X Bhd | Uchi Technologies vs. Tambun Indah Land |
| K One vs. Hong Leong Bank | K One vs. Sports Toto Berhad | K One vs. Sungei Bagan Rubber | K One vs. Lyc Healthcare 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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