Correlation Between Keck Seng and USU Software
Can any of the company-specific risk be diversified away by investing in both Keck Seng and USU Software 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 USU Software 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 USU Software AG, you can compare the effects of market volatilities on Keck Seng and USU Software 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 USU Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keck Seng and USU Software.
Diversification Opportunities for Keck Seng and USU Software
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Keck and USU is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Keck Seng Investments and USU Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USU Software AG 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 USU Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USU Software AG has no effect on the direction of Keck Seng i.e., Keck Seng and USU Software go up and down completely randomly.
Pair Corralation between Keck Seng and USU Software
Assuming the 90 days horizon Keck Seng Investments is expected to generate 4.14 times more return on investment than USU Software. However, Keck Seng is 4.14 times more volatile than USU Software AG. It trades about 0.02 of its potential returns per unit of risk. USU Software AG is currently generating about -0.02 per unit of risk. If you would invest 26.00 in Keck Seng Investments on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Keck Seng Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.31% |
| Values | Daily Returns |
Keck Seng Investments vs. USU Software AG
Performance |
| Timeline |
| Keck Seng Investments |
| USU Software AG |
Keck Seng and USU Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keck Seng and USU Software
The main advantage of trading using opposite Keck Seng and USU Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keck Seng position performs unexpectedly, USU Software 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 USU Software will offset losses from the drop in USU Software'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 |
| USU Software vs. Keck Seng Investments | USU Software vs. BlueScope Steel Limited | USU Software vs. Scottish Mortgage Investment | USU Software vs. United States Steel |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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