Correlation Between Uchi Technologies and Keck Seng
Can any of the company-specific risk be diversified away by investing in both Uchi Technologies and Keck Seng 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 Keck Seng 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 Keck Seng Malaysia, you can compare the effects of market volatilities on Uchi Technologies and Keck Seng 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 Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uchi Technologies and Keck Seng.
Diversification Opportunities for Uchi Technologies and Keck Seng
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uchi and Keck is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Uchi Technologies Bhd and Keck Seng Malaysia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keck Seng Malaysia 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 Keck Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keck Seng Malaysia has no effect on the direction of Uchi Technologies i.e., Uchi Technologies and Keck Seng go up and down completely randomly.
Pair Corralation between Uchi Technologies and Keck Seng
Assuming the 90 days trading horizon Uchi Technologies Bhd is expected to generate 1.02 times more return on investment than Keck Seng. However, Uchi Technologies is 1.02 times more volatile than Keck Seng Malaysia. It trades about 0.03 of its potential returns per unit of risk. Keck Seng Malaysia is currently generating about -0.03 per unit of risk. If you would invest 380.00 in Uchi Technologies Bhd on September 12, 2024 and sell it today you would earn a total of 11.00 from holding Uchi Technologies Bhd or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uchi Technologies Bhd vs. Keck Seng Malaysia
Performance |
| Timeline |
| Uchi Technologies Bhd |
| Keck Seng Malaysia |
Uchi Technologies and Keck Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uchi Technologies and Keck Seng
The main advantage of trading using opposite Uchi Technologies and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uchi Technologies position performs unexpectedly, Keck Seng 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 Keck Seng will offset losses from the drop in Keck Seng's long position.| Uchi Technologies vs. K One Technology Bhd | Uchi Technologies vs. Al Aqar Healthcare | Uchi Technologies vs. PMB Technology Bhd | Uchi Technologies vs. Digistar Bhd |
| Keck Seng vs. SSF Home Group | Keck Seng vs. CSC Steel Holdings | Keck Seng vs. Lotte Chemical Titan | Keck Seng vs. Leader Steel Holdings |
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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