Correlation Between Eonmetall Group and K One
Can any of the company-specific risk be diversified away by investing in both Eonmetall Group 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 Eonmetall Group and K One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eonmetall Group Bhd and K One Technology Bhd, you can compare the effects of market volatilities on Eonmetall Group 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 Eonmetall Group with a short position of K One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eonmetall Group and K One.
Diversification Opportunities for Eonmetall Group and K One
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eonmetall and 0111 is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eonmetall Group 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 Eonmetall Group 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 Eonmetall Group 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 Eonmetall Group i.e., Eonmetall Group and K One go up and down completely randomly.
Pair Corralation between Eonmetall Group and K One
Assuming the 90 days trading horizon Eonmetall Group Bhd is expected to generate 1.27 times more return on investment than K One. However, Eonmetall Group is 1.27 times more volatile than K One Technology Bhd. It trades about -0.05 of its potential returns per unit of risk. K One Technology Bhd is currently generating about -0.36 per unit of risk. If you would invest 30.00 in Eonmetall Group Bhd on November 4, 2024 and sell it today you would lose (2.00) from holding Eonmetall Group Bhd or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eonmetall Group Bhd vs. K One Technology Bhd
Performance |
| Timeline |
| Eonmetall Group Bhd |
| K One Technology |
Eonmetall Group and K One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eonmetall Group and K One
The main advantage of trading using opposite Eonmetall Group and K One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eonmetall Group 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.| Eonmetall Group vs. Pantech Group Holdings | Eonmetall Group vs. Binasat Communications Bhd | Eonmetall Group vs. Cengild Medical Berhad | Eonmetall Group vs. SFP Tech Holdings |
| K One vs. Sungei Bagan Rubber | K One vs. IHH Healthcare Bhd | K One vs. Sports Toto Berhad | K One vs. Datasonic Group 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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