Correlation Between Keck Seng and Inspire Medical
Can any of the company-specific risk be diversified away by investing in both Keck Seng and Inspire Medical 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 Keck Seng and Inspire Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keck Seng Investments and Inspire Medical Systems, you can compare the effects of market volatilities on Keck Seng and Inspire Medical 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 Keck Seng with a short position of Inspire Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keck Seng and Inspire Medical.
Diversification Opportunities for Keck Seng and Inspire Medical
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Keck and Inspire is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Keck Seng Investments and Inspire Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspire Medical Systems and Keck Seng 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 Keck Seng Investments are associated (or correlated) with Inspire Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspire Medical Systems has no effect on the direction of Keck Seng i.e., Keck Seng and Inspire Medical go up and down completely randomly.
Pair Corralation between Keck Seng and Inspire Medical
Assuming the 90 days horizon Keck Seng Investments is expected to generate 1.18 times more return on investment than Inspire Medical. However, Keck Seng is 1.18 times more volatile than Inspire Medical Systems. It trades about 0.02 of its potential returns per unit of risk. Inspire Medical Systems is currently generating about -0.05 per unit of risk. If you would invest 26.00 in Keck Seng Investments on November 7, 2024 and sell it today you would earn a total of 0.00 from holding Keck Seng Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keck Seng Investments vs. Inspire Medical Systems
Performance |
| Timeline |
| Keck Seng Investments |
| Inspire Medical Systems |
Keck Seng and Inspire Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keck Seng and Inspire Medical
The main advantage of trading using opposite Keck Seng and Inspire Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keck Seng position performs unexpectedly, Inspire Medical 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 Inspire Medical will offset losses from the drop in Inspire Medical's long position.| Keck Seng vs. Automatic Data Processing | Keck Seng vs. INFORMATION SVC GRP | Keck Seng vs. MAVEN WIRELESS SWEDEN | Keck Seng vs. MOVIE GAMES SA |
| Inspire Medical vs. KOBE STEEL LTD | Inspire Medical vs. Khiron Life Sciences | Inspire Medical vs. Cognizant Technology Solutions | Inspire Medical vs. X FAB Silicon Foundries |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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