Correlation Between Keck Seng and VELA TECHNOLPLC
Can any of the company-specific risk be diversified away by investing in both Keck Seng and VELA TECHNOLPLC 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 VELA TECHNOLPLC 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 VELA TECHNOLPLC LS 0001, you can compare the effects of market volatilities on Keck Seng and VELA TECHNOLPLC 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 VELA TECHNOLPLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keck Seng and VELA TECHNOLPLC.
Diversification Opportunities for Keck Seng and VELA TECHNOLPLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Keck and VELA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Keck Seng Investments and VELA TECHNOLPLC LS 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VELA TECHNOLPLC LS 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 VELA TECHNOLPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VELA TECHNOLPLC LS has no effect on the direction of Keck Seng i.e., Keck Seng and VELA TECHNOLPLC go up and down completely randomly.
Pair Corralation between Keck Seng and VELA TECHNOLPLC
If you would invest 23.00 in Keck Seng Investments on October 30, 2024 and sell it today you would earn a total of 3.00 from holding Keck Seng Investments or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.3% |
| Values | Daily Returns |
Keck Seng Investments vs. VELA TECHNOLPLC LS 0001
Performance |
| Timeline |
| Keck Seng Investments |
| VELA TECHNOLPLC LS |
Keck Seng and VELA TECHNOLPLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keck Seng and VELA TECHNOLPLC
The main advantage of trading using opposite Keck Seng and VELA TECHNOLPLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keck Seng position performs unexpectedly, VELA TECHNOLPLC 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 VELA TECHNOLPLC will offset losses from the drop in VELA TECHNOLPLC's long position.| Keck Seng vs. DETALION GAMES SA | Keck Seng vs. TEN SQUARE GAMES | Keck Seng vs. Media and Games | Keck Seng vs. American Public Education |
| VELA TECHNOLPLC vs. Apple Inc | VELA TECHNOLPLC vs. Apple Inc | VELA TECHNOLPLC vs. Apple Inc | VELA TECHNOLPLC vs. Apple Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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