Correlation Between Rubberex M and Kobay Tech
Can any of the company-specific risk be diversified away by investing in both Rubberex M and Kobay Tech 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 Rubberex M and Kobay Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubberex M and Kobay Tech Bhd, you can compare the effects of market volatilities on Rubberex M and Kobay Tech 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 Rubberex M with a short position of Kobay Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubberex M and Kobay Tech.
Diversification Opportunities for Rubberex M and Kobay Tech
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rubberex and Kobay is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Rubberex M and Kobay Tech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kobay Tech Bhd and Rubberex M 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 Rubberex M are associated (or correlated) with Kobay Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kobay Tech Bhd has no effect on the direction of Rubberex M i.e., Rubberex M and Kobay Tech go up and down completely randomly.
Pair Corralation between Rubberex M and Kobay Tech
Assuming the 90 days trading horizon Rubberex M is expected to under-perform the Kobay Tech. But the stock apears to be less risky and, when comparing its historical volatility, Rubberex M is 1.01 times less risky than Kobay Tech. The stock trades about -0.02 of its potential returns per unit of risk. The Kobay Tech Bhd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 129.00 in Kobay Tech Bhd on October 26, 2024 and sell it today you would earn a total of 12.00 from holding Kobay Tech Bhd or generate 9.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Rubberex M vs. Kobay Tech Bhd
Performance |
Timeline |
Rubberex M |
Kobay Tech Bhd |
Rubberex M and Kobay Tech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rubberex M and Kobay Tech
The main advantage of trading using opposite Rubberex M and Kobay Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubberex M position performs unexpectedly, Kobay Tech 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 Kobay Tech will offset losses from the drop in Kobay Tech's long position.Rubberex M vs. Top Glove | Rubberex M vs. Hartalega Holdings Bhd | Rubberex M vs. Kossan Rubber Industries | Rubberex M vs. Supermax Bhd |
Kobay Tech vs. Rubberex M | Kobay Tech vs. Public Bank Bhd | Kobay Tech vs. SSF Home Group | Kobay Tech vs. Star Media Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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