Correlation Between Kossan Rubber and Mr D
Can any of the company-specific risk be diversified away by investing in both Kossan Rubber and Mr D 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 Kossan Rubber and Mr D into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kossan Rubber Industries and Mr D I, you can compare the effects of market volatilities on Kossan Rubber and Mr D 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 Kossan Rubber with a short position of Mr D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kossan Rubber and Mr D.
Diversification Opportunities for Kossan Rubber and Mr D
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kossan and 5296 is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kossan Rubber Industries and Mr D I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mr D I and Kossan Rubber 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 Kossan Rubber Industries are associated (or correlated) with Mr D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mr D I has no effect on the direction of Kossan Rubber i.e., Kossan Rubber and Mr D go up and down completely randomly.
Pair Corralation between Kossan Rubber and Mr D
Assuming the 90 days trading horizon Kossan Rubber Industries is expected to under-perform the Mr D. In addition to that, Kossan Rubber is 2.05 times more volatile than Mr D I. It trades about -0.24 of its total potential returns per unit of risk. Mr D I is currently generating about -0.14 per unit of volatility. If you would invest 181.00 in Mr D I on October 20, 2024 and sell it today you would lose (8.00) from holding Mr D I or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kossan Rubber Industries vs. Mr D I
Performance |
| Timeline |
| Kossan Rubber Industries |
| Mr D I |
Kossan Rubber and Mr D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kossan Rubber and Mr D
The main advantage of trading using opposite Kossan Rubber and Mr D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kossan Rubber position performs unexpectedly, Mr D 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 Mr D will offset losses from the drop in Mr D's long position.| Kossan Rubber vs. Greatech Technology Bhd | Kossan Rubber vs. TAS Offshore Bhd | Kossan Rubber vs. Resintech Bhd | Kossan Rubber vs. Cloudpoint Technology Berhad |
| Mr D vs. Computer Forms Bhd | Mr D vs. Kossan Rubber Industries | Mr D vs. Petronas Chemicals Group | Mr D vs. Kluang Rubber |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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