Correlation Between Keck Seng and CSL
Can any of the company-specific risk be diversified away by investing in both Keck Seng and CSL 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 CSL 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 CSL Limited, you can compare the effects of market volatilities on Keck Seng and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keck Seng and CSL.
Diversification Opportunities for Keck Seng and CSL
Modest diversification
The 3 months correlation between Keck and CSL is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Keck Seng Investments and CSL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL Limited 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL Limited has no effect on the direction of Keck Seng i.e., Keck Seng and CSL go up and down completely randomly.
Pair Corralation between Keck Seng and CSL
Assuming the 90 days horizon Keck Seng Investments is expected to generate 4.48 times more return on investment than CSL. However, Keck Seng is 4.48 times more volatile than CSL Limited. It trades about 0.06 of its potential returns per unit of risk. CSL Limited is currently generating about -0.08 per unit of risk. If you would invest 21.00 in Keck Seng Investments on October 26, 2024 and sell it today you would earn a total of 5.00 from holding Keck Seng Investments or generate 23.81% 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. CSL Limited
Performance |
| Timeline |
| Keck Seng Investments |
| CSL Limited |
Keck Seng and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keck Seng and CSL
The main advantage of trading using opposite Keck Seng and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keck Seng position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL'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 |
| CSL vs. WT OFFSHORE | CSL vs. Keck Seng Investments | CSL vs. Coffee Holding Co | CSL vs. PennyMac Mortgage Investment |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |