Correlation Between Keck Seng and Amcor Plc
Can any of the company-specific risk be diversified away by investing in both Keck Seng and Amcor Plc 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 Amcor Plc 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 Amcor plc, you can compare the effects of market volatilities on Keck Seng and Amcor Plc 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 Amcor Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keck Seng and Amcor Plc.
Diversification Opportunities for Keck Seng and Amcor Plc
Pay attention - limited upside
The 3 months correlation between Keck and Amcor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Keck Seng Investments and Amcor plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor plc 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 Amcor Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcor plc has no effect on the direction of Keck Seng i.e., Keck Seng and Amcor Plc go up and down completely randomly.
Pair Corralation between Keck Seng and Amcor Plc
Assuming the 90 days horizon Keck Seng Investments is expected to generate 4.68 times more return on investment than Amcor Plc. However, Keck Seng is 4.68 times more volatile than Amcor plc. It trades about 0.12 of its potential returns per unit of risk. Amcor plc is currently generating about 0.24 per unit of risk. If you would invest 24.00 in Keck Seng Investments on October 26, 2024 and sell it today you would earn a total of 2.00 from holding Keck Seng Investments or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keck Seng Investments vs. Amcor plc
Performance |
| Timeline |
| Keck Seng Investments |
| Amcor plc |
Keck Seng and Amcor Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keck Seng and Amcor Plc
The main advantage of trading using opposite Keck Seng and Amcor Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keck Seng position performs unexpectedly, Amcor Plc 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 Amcor Plc will offset losses from the drop in Amcor Plc's long position.| Keck Seng vs. Marriott International | Keck Seng vs. Hilton Worldwide Holdings | Keck Seng vs. H World Group | Keck Seng vs. Hyatt Hotels |
| Amcor Plc vs. Keck Seng Investments | Amcor Plc vs. SLR Investment Corp | Amcor Plc vs. Guidewire Software | Amcor Plc vs. Check Point Software |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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