Correlation Between Keck Seng and Taylor Morrison
Can any of the company-specific risk be diversified away by investing in both Keck Seng and Taylor Morrison 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 Taylor Morrison 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 Taylor Morrison Home, you can compare the effects of market volatilities on Keck Seng and Taylor Morrison 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 Taylor Morrison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keck Seng and Taylor Morrison.
Diversification Opportunities for Keck Seng and Taylor Morrison
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Keck and Taylor is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Keck Seng Investments and Taylor Morrison Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taylor Morrison Home 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 Taylor Morrison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taylor Morrison Home has no effect on the direction of Keck Seng i.e., Keck Seng and Taylor Morrison go up and down completely randomly.
Pair Corralation between Keck Seng and Taylor Morrison
Assuming the 90 days horizon Keck Seng Investments is expected to generate 1.93 times more return on investment than Taylor Morrison. However, Keck Seng is 1.93 times more volatile than Taylor Morrison Home. It trades about 0.11 of its potential returns per unit of risk. Taylor Morrison Home is currently generating about 0.08 per unit of risk. If you would invest 24.00 in Keck Seng Investments on November 4, 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 Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Keck Seng Investments vs. Taylor Morrison Home
Performance |
| Timeline |
| Keck Seng Investments |
| Taylor Morrison Home |
Keck Seng and Taylor Morrison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keck Seng and Taylor Morrison
The main advantage of trading using opposite Keck Seng and Taylor Morrison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keck Seng position performs unexpectedly, Taylor Morrison 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 Taylor Morrison will offset losses from the drop in Taylor Morrison's long position.| Keck Seng vs. URBAN OUTFITTERS | Keck Seng vs. Take Two Interactive Software | Keck Seng vs. ATOSS SOFTWARE | Keck Seng vs. Autohome ADR |
| Taylor Morrison vs. FAST RETAIL ADR | Taylor Morrison vs. Cogent Communications Holdings | Taylor Morrison vs. GMO Internet | Taylor Morrison vs. Computershare Limited |
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 Stocks Directory module to find actively traded stocks across global markets.
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