Correlation Between Resintech Bhd and KL Technology
Can any of the company-specific risk be diversified away by investing in both Resintech Bhd and KL Technology 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 Resintech Bhd and KL Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Resintech Bhd and KL Technology, you can compare the effects of market volatilities on Resintech Bhd and KL Technology 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 Resintech Bhd with a short position of KL Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Resintech Bhd and KL Technology.
Diversification Opportunities for Resintech Bhd and KL Technology
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Resintech and KLTE is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Resintech Bhd and KL Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KL Technology and Resintech Bhd 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 Resintech Bhd are associated (or correlated) with KL Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KL Technology has no effect on the direction of Resintech Bhd i.e., Resintech Bhd and KL Technology go up and down completely randomly.
Pair Corralation between Resintech Bhd and KL Technology
Assuming the 90 days trading horizon Resintech Bhd is expected to under-perform the KL Technology. In addition to that, Resintech Bhd is 1.01 times more volatile than KL Technology. It trades about -0.16 of its total potential returns per unit of risk. KL Technology is currently generating about 0.02 per unit of volatility. If you would invest 5,931 in KL Technology on August 30, 2024 and sell it today you would earn a total of 35.00 from holding KL Technology or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Resintech Bhd vs. KL Technology
Performance |
| Timeline |
Resintech Bhd and KL Technology Volatility Contrast
Predicted Return Density |
| Returns |
Resintech Bhd
Pair trading matchups for Resintech Bhd
KL Technology
Pair trading matchups for KL Technology
Pair Trading with Resintech Bhd and KL Technology
The main advantage of trading using opposite Resintech Bhd and KL Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Resintech Bhd position performs unexpectedly, KL Technology 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 KL Technology will offset losses from the drop in KL Technology's long position.| Resintech Bhd vs. Minetech Resources Bhd | Resintech Bhd vs. Sunzen Biotech Bhd | Resintech Bhd vs. Hengyuan Refining | Resintech Bhd vs. Impiana Hotels Bhd |
| KL Technology vs. Radiant Globaltech Bhd | KL Technology vs. Supercomnet Technologies Bhd | KL Technology vs. Resintech Bhd | KL Technology vs. Dataprep Holdings 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 Stocks Directory module to find actively traded stocks across global markets.
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