Correlation Between Keck Seng and REMEDY ENTERTAINMENT
Can any of the company-specific risk be diversified away by investing in both Keck Seng and REMEDY ENTERTAINMENT 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 REMEDY ENTERTAINMENT 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 REMEDY ENTERTAINMENT OYJ, you can compare the effects of market volatilities on Keck Seng and REMEDY ENTERTAINMENT 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 REMEDY ENTERTAINMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keck Seng and REMEDY ENTERTAINMENT.
Diversification Opportunities for Keck Seng and REMEDY ENTERTAINMENT
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Keck and REMEDY is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Keck Seng Investments and REMEDY ENTERTAINMENT OYJ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REMEDY ENTERTAINMENT OYJ 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 REMEDY ENTERTAINMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REMEDY ENTERTAINMENT OYJ has no effect on the direction of Keck Seng i.e., Keck Seng and REMEDY ENTERTAINMENT go up and down completely randomly.
Pair Corralation between Keck Seng and REMEDY ENTERTAINMENT
Assuming the 90 days horizon Keck Seng Investments is expected to generate 2.08 times more return on investment than REMEDY ENTERTAINMENT. However, Keck Seng is 2.08 times more volatile than REMEDY ENTERTAINMENT OYJ. It trades about 0.12 of its potential returns per unit of risk. REMEDY ENTERTAINMENT OYJ is currently generating about 0.0 per unit of risk. If you would invest 24.00 in Keck Seng Investments on October 29, 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 | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keck Seng Investments vs. REMEDY ENTERTAINMENT OYJ
Performance |
| Timeline |
| Keck Seng Investments |
| REMEDY ENTERTAINMENT OYJ |
Keck Seng and REMEDY ENTERTAINMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keck Seng and REMEDY ENTERTAINMENT
The main advantage of trading using opposite Keck Seng and REMEDY ENTERTAINMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keck Seng position performs unexpectedly, REMEDY ENTERTAINMENT 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 REMEDY ENTERTAINMENT will offset losses from the drop in REMEDY ENTERTAINMENT's long position.| Keck Seng vs. SK TELECOM TDADR | Keck Seng vs. Charter Communications | Keck Seng vs. CITIC Telecom International | Keck Seng vs. Highlight Communications AG |
| REMEDY ENTERTAINMENT vs. CITY OFFICE REIT | REMEDY ENTERTAINMENT vs. AGNC INVESTMENT | REMEDY ENTERTAINMENT vs. Addus HomeCare | REMEDY ENTERTAINMENT vs. Virtus Investment Partners |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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