Correlation Between JLF INVESTMENT and Keck Seng
Can any of the company-specific risk be diversified away by investing in both JLF INVESTMENT and Keck Seng 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 JLF INVESTMENT and Keck Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLF INVESTMENT and Keck Seng Investments, you can compare the effects of market volatilities on JLF INVESTMENT and Keck Seng 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 JLF INVESTMENT with a short position of Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLF INVESTMENT and Keck Seng.
Diversification Opportunities for JLF INVESTMENT and Keck Seng
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JLF and Keck is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JLF INVESTMENT and Keck Seng Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keck Seng Investments and JLF INVESTMENT 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 JLF INVESTMENT are associated (or correlated) with Keck Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keck Seng Investments has no effect on the direction of JLF INVESTMENT i.e., JLF INVESTMENT and Keck Seng go up and down completely randomly.
Pair Corralation between JLF INVESTMENT and Keck Seng
If you would invest 16.00 in Keck Seng Investments on October 12, 2024 and sell it today you would earn a total of 11.00 from holding Keck Seng Investments or generate 68.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLF INVESTMENT vs. Keck Seng Investments
Performance |
| Timeline |
| JLF INVESTMENT |
| Keck Seng Investments |
JLF INVESTMENT and Keck Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLF INVESTMENT and Keck Seng
The main advantage of trading using opposite JLF INVESTMENT and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLF INVESTMENT position performs unexpectedly, Keck Seng 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 Keck Seng will offset losses from the drop in Keck Seng's long position.| JLF INVESTMENT vs. GLG LIFE TECH | JLF INVESTMENT vs. Penn National Gaming | JLF INVESTMENT vs. UNITED RENTALS | JLF INVESTMENT vs. Digilife Technologies Limited |
| Keck Seng vs. Marriott International | Keck Seng vs. Hyatt Hotels | Keck Seng vs. InterContinental Hotels Group | Keck Seng vs. INTERCONT HOTELS |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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