Correlation Between Computer Forms and K One
Can any of the company-specific risk be diversified away by investing in both Computer Forms 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 Computer Forms and K One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer Forms Bhd and K One Technology Bhd, you can compare the effects of market volatilities on Computer Forms 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 Computer Forms with a short position of K One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Forms and K One.
Diversification Opportunities for Computer Forms and K One
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Computer and 0111 is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Computer Forms 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 Computer Forms 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 Computer Forms 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 Computer Forms i.e., Computer Forms and K One go up and down completely randomly.
Pair Corralation between Computer Forms and K One
Assuming the 90 days trading horizon Computer Forms Bhd is expected to under-perform the K One. In addition to that, Computer Forms is 1.05 times more volatile than K One Technology Bhd. It trades about -0.05 of its total potential returns per unit of risk. K One Technology Bhd is currently generating about 0.08 per unit of volatility. If you would invest 17.00 in K One Technology Bhd on October 24, 2024 and sell it today you would earn a total of 1.00 from holding K One Technology Bhd or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Computer Forms Bhd vs. K One Technology Bhd
Performance |
| Timeline |
| Computer Forms Bhd |
| K One Technology |
Computer Forms and K One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Forms and K One
The main advantage of trading using opposite Computer Forms and K One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Forms 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.| Computer Forms vs. Apex Healthcare Bhd | Computer Forms vs. Greatech Technology Bhd | Computer Forms vs. Eonmetall Group Bhd | Computer Forms vs. Silver Ridge Holdings |
| K One vs. Uchi Technologies Bhd | K One vs. KPJ Healthcare Bhd | K One vs. Hartalega Holdings Bhd | K One vs. OSK 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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