Correlation Between Dataprep Holdings and KL Technology
Can any of the company-specific risk be diversified away by investing in both Dataprep Holdings 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 Dataprep Holdings and KL Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dataprep Holdings Bhd and KL Technology, you can compare the effects of market volatilities on Dataprep Holdings 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 Dataprep Holdings with a short position of KL Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dataprep Holdings and KL Technology.
Diversification Opportunities for Dataprep Holdings and KL Technology
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dataprep and KLTE is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dataprep Holdings Bhd and KL Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KL Technology and Dataprep Holdings 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 Dataprep Holdings 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 Dataprep Holdings i.e., Dataprep Holdings and KL Technology go up and down completely randomly.
Pair Corralation between Dataprep Holdings and KL Technology
Assuming the 90 days trading horizon Dataprep Holdings is expected to generate 1.74 times less return on investment than KL Technology. In addition to that, Dataprep Holdings is 1.32 times more volatile than KL Technology. It trades about 0.01 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 Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dataprep Holdings Bhd vs. KL Technology
Performance |
| Timeline |
Dataprep Holdings and KL Technology Volatility Contrast
Predicted Return Density |
| Returns |
Dataprep Holdings Bhd
Pair trading matchups for Dataprep Holdings
KL Technology
Pair trading matchups for KL Technology
Pair Trading with Dataprep Holdings and KL Technology
The main advantage of trading using opposite Dataprep Holdings and KL Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dataprep Holdings 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.| Dataprep Holdings vs. Awanbiru Technology Bhd | Dataprep Holdings vs. TechnoDex Bhd | Dataprep Holdings vs. Diversified Gateway Solutions | Dataprep Holdings vs. Privasia Technology 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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