Correlation Between Lotus KFM and Public Packages
Can any of the company-specific risk be diversified away by investing in both Lotus KFM and Public Packages 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 Lotus KFM and Public Packages into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lotus KFM Bhd and Public Packages Holdings, you can compare the effects of market volatilities on Lotus KFM and Public Packages 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 Lotus KFM with a short position of Public Packages. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus KFM and Public Packages.
Diversification Opportunities for Lotus KFM and Public Packages
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lotus and Public is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lotus KFM Bhd and Public Packages Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Packages Holdings and Lotus KFM 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 Lotus KFM Bhd are associated (or correlated) with Public Packages. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Packages Holdings has no effect on the direction of Lotus KFM i.e., Lotus KFM and Public Packages go up and down completely randomly.
Pair Corralation between Lotus KFM and Public Packages
If you would invest 77.00 in Public Packages Holdings on September 14, 2024 and sell it today you would earn a total of 7.00 from holding Public Packages Holdings or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lotus KFM Bhd vs. Public Packages Holdings
Performance |
| Timeline |
| Lotus KFM Bhd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Public Packages Holdings |
Lotus KFM and Public Packages Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus KFM and Public Packages
The main advantage of trading using opposite Lotus KFM and Public Packages positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus KFM position performs unexpectedly, Public Packages 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 Public Packages will offset losses from the drop in Public Packages' long position.| Lotus KFM vs. Awanbiru Technology Bhd | Lotus KFM vs. EA Technique M | Lotus KFM vs. Ho Hup Construction | Lotus KFM vs. FARM FRESH BERHAD |
| Public Packages vs. Malayan Banking Bhd | Public Packages vs. Public Bank Bhd | Public Packages vs. Petronas Chemicals Group | Public Packages vs. Tenaga Nasional 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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