Correlation Between Becle SA and Keppel
Can any of the company-specific risk be diversified away by investing in both Becle SA and Keppel 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 Becle SA and Keppel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Becle SA de and Keppel Limited, you can compare the effects of market volatilities on Becle SA and Keppel 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 Becle SA with a short position of Keppel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Becle SA and Keppel.
Diversification Opportunities for Becle SA and Keppel
Very weak diversification
The 3 months correlation between Becle and Keppel is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Becle SA de and Keppel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keppel Limited and Becle SA 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 Becle SA de are associated (or correlated) with Keppel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keppel Limited has no effect on the direction of Becle SA i.e., Becle SA and Keppel go up and down completely randomly.
Pair Corralation between Becle SA and Keppel
Assuming the 90 days horizon Becle SA de is expected to under-perform the Keppel. In addition to that, Becle SA is 1.07 times more volatile than Keppel Limited. It trades about -0.13 of its total potential returns per unit of risk. Keppel Limited is currently generating about 0.04 per unit of volatility. If you would invest 965.00 in Keppel Limited on September 20, 2024 and sell it today you would earn a total of 51.00 from holding Keppel Limited or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Becle SA de vs. Keppel Limited
Performance |
| Timeline |
| Becle SA de |
| Keppel Limited |
Becle SA and Keppel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Becle SA and Keppel
The main advantage of trading using opposite Becle SA and Keppel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Becle SA position performs unexpectedly, Keppel 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 Keppel will offset losses from the drop in Keppel's long position.| Becle SA vs. Andrew Peller Limited | Becle SA vs. Aristocrat Group Corp | Becle SA vs. Willamette Valley Vineyards | Becle SA vs. Brown Forman |
| Keppel vs. Arca Continental SAB | Keppel vs. Becle SA de | Keppel vs. Aquagold International | Keppel vs. Morningstar Unconstrained Allocation |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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