Correlation Between Impiana Hotels and Kossan Rubber
Can any of the company-specific risk be diversified away by investing in both Impiana Hotels and Kossan Rubber 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 Impiana Hotels and Kossan Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impiana Hotels Bhd and Kossan Rubber Industries, you can compare the effects of market volatilities on Impiana Hotels and Kossan Rubber 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 Impiana Hotels with a short position of Kossan Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impiana Hotels and Kossan Rubber.
Diversification Opportunities for Impiana Hotels and Kossan Rubber
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Impiana and Kossan is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Impiana Hotels Bhd and Kossan Rubber Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kossan Rubber Industries and Impiana Hotels 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 Impiana Hotels Bhd are associated (or correlated) with Kossan Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kossan Rubber Industries has no effect on the direction of Impiana Hotels i.e., Impiana Hotels and Kossan Rubber go up and down completely randomly.
Pair Corralation between Impiana Hotels and Kossan Rubber
Assuming the 90 days trading horizon Impiana Hotels is expected to generate 1.41 times less return on investment than Kossan Rubber. In addition to that, Impiana Hotels is 1.64 times more volatile than Kossan Rubber Industries. It trades about 0.14 of its total potential returns per unit of risk. Kossan Rubber Industries is currently generating about 0.33 per unit of volatility. If you would invest 214.00 in Kossan Rubber Industries on September 1, 2024 and sell it today you would earn a total of 34.00 from holding Kossan Rubber Industries or generate 15.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impiana Hotels Bhd vs. Kossan Rubber Industries
Performance |
| Timeline |
| Impiana Hotels Bhd |
| Kossan Rubber Industries |
Impiana Hotels and Kossan Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impiana Hotels and Kossan Rubber
The main advantage of trading using opposite Impiana Hotels and Kossan Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impiana Hotels position performs unexpectedly, Kossan Rubber 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 Kossan Rubber will offset losses from the drop in Kossan Rubber's long position.| Impiana Hotels vs. Digistar Bhd | Impiana Hotels vs. Minetech Resources Bhd | Impiana Hotels vs. Swift Haulage Bhd | Impiana Hotels vs. Bina Darulaman Bhd |
| Kossan Rubber vs. Kawan Food Bhd | Kossan Rubber vs. Kluang Rubber | Kossan Rubber vs. K One Technology Bhd | Kossan Rubber vs. Daya Materials 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |