Correlation Between Keck Seng and Ribbon Communications
Can any of the company-specific risk be diversified away by investing in both Keck Seng and Ribbon Communications 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 Ribbon Communications 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 Ribbon Communications, you can compare the effects of market volatilities on Keck Seng and Ribbon Communications 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 Ribbon Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keck Seng and Ribbon Communications.
Diversification Opportunities for Keck Seng and Ribbon Communications
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Keck and Ribbon is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Keck Seng Investments and Ribbon Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ribbon Communications 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 Ribbon Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ribbon Communications has no effect on the direction of Keck Seng i.e., Keck Seng and Ribbon Communications go up and down completely randomly.
Pair Corralation between Keck Seng and Ribbon Communications
Assuming the 90 days horizon Keck Seng Investments is expected to generate 1.57 times more return on investment than Ribbon Communications. However, Keck Seng is 1.57 times more volatile than Ribbon Communications. It trades about 0.05 of its potential returns per unit of risk. Ribbon Communications is currently generating about 0.03 per unit of risk. If you would invest 12.00 in Keck Seng Investments on October 19, 2024 and sell it today you would earn a total of 12.00 from holding Keck Seng Investments or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keck Seng Investments vs. Ribbon Communications
Performance |
| Timeline |
| Keck Seng Investments |
| Ribbon Communications |
Keck Seng and Ribbon Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keck Seng and Ribbon Communications
The main advantage of trading using opposite Keck Seng and Ribbon Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keck Seng position performs unexpectedly, Ribbon Communications 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 Ribbon Communications will offset losses from the drop in Ribbon Communications' long position.| Keck Seng vs. SOEDER SPORTFISKE AB | Keck Seng vs. Air Transport Services | Keck Seng vs. SALESFORCE INC CDR | Keck Seng vs. TRADELINK ELECTRON |
| Ribbon Communications vs. Virtus Investment Partners | Ribbon Communications vs. ITALIAN WINE BRANDS | Ribbon Communications vs. Keck Seng Investments | Ribbon Communications vs. Apollo Investment Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |