Correlation Between Carmat SA and KEPPEL CORP
Can any of the company-specific risk be diversified away by investing in both Carmat SA and KEPPEL CORP 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 Carmat SA and KEPPEL CORP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carmat SA and KEPPEL P , you can compare the effects of market volatilities on Carmat SA and KEPPEL CORP 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 Carmat SA with a short position of KEPPEL CORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmat SA and KEPPEL CORP.
Diversification Opportunities for Carmat SA and KEPPEL CORP
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carmat and KEPPEL is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Carmat SA and KEPPEL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEPPEL CORP and Carmat 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 Carmat SA are associated (or correlated) with KEPPEL CORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEPPEL CORP has no effect on the direction of Carmat SA i.e., Carmat SA and KEPPEL CORP go up and down completely randomly.
Pair Corralation between Carmat SA and KEPPEL CORP
Assuming the 90 days horizon Carmat SA is expected to under-perform the KEPPEL CORP. In addition to that, Carmat SA is 4.22 times more volatile than KEPPEL P . It trades about -0.37 of its total potential returns per unit of risk. KEPPEL P is currently generating about 0.22 per unit of volatility. If you would invest 451.00 in KEPPEL P on August 28, 2024 and sell it today you would earn a total of 19.00 from holding KEPPEL P or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carmat SA vs. KEPPEL P
Performance |
| Timeline |
| Carmat SA |
| KEPPEL CORP |
Carmat SA and KEPPEL CORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmat SA and KEPPEL CORP
The main advantage of trading using opposite Carmat SA and KEPPEL CORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmat SA position performs unexpectedly, KEPPEL CORP 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 CORP will offset losses from the drop in KEPPEL CORP's long position.| Carmat SA vs. American Eagle Outfitters | Carmat SA vs. Computer And Technologies | Carmat SA vs. VARIOUS EATERIES LS | Carmat SA vs. FANDIFI TECHNOLOGY P |
| KEPPEL CORP vs. GigaMedia | KEPPEL CORP vs. Ubisoft Entertainment SA | KEPPEL CORP vs. PT Global Mediacom | KEPPEL CORP vs. Universal Entertainment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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