Correlation Between KL Technology and Radiant Globaltech
Can any of the company-specific risk be diversified away by investing in both KL Technology and Radiant Globaltech 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 KL Technology and Radiant Globaltech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KL Technology and Radiant Globaltech Bhd, you can compare the effects of market volatilities on KL Technology and Radiant Globaltech 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 KL Technology with a short position of Radiant Globaltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of KL Technology and Radiant Globaltech.
Diversification Opportunities for KL Technology and Radiant Globaltech
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KLTE and Radiant is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding KL Technology and Radiant Globaltech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radiant Globaltech Bhd and KL Technology 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 KL Technology are associated (or correlated) with Radiant Globaltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radiant Globaltech Bhd has no effect on the direction of KL Technology i.e., KL Technology and Radiant Globaltech go up and down completely randomly.
Pair Corralation between KL Technology and Radiant Globaltech
Assuming the 90 days trading horizon KL Technology is expected to under-perform the Radiant Globaltech. But the index apears to be less risky and, when comparing its historical volatility, KL Technology is 2.09 times less risky than Radiant Globaltech. The index trades about -0.01 of its potential returns per unit of risk. The Radiant Globaltech Bhd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Radiant Globaltech Bhd on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Radiant Globaltech Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.26% |
| Values | Daily Returns |
KL Technology vs. Radiant Globaltech Bhd
Performance |
| Timeline |
KL Technology and Radiant Globaltech Volatility Contrast
Predicted Return Density |
| Returns |
KL Technology
Pair trading matchups for KL Technology
Radiant Globaltech Bhd
Pair trading matchups for Radiant Globaltech
Pair Trading with KL Technology and Radiant Globaltech
The main advantage of trading using opposite KL Technology and Radiant Globaltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KL Technology position performs unexpectedly, Radiant Globaltech 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 Radiant Globaltech will offset losses from the drop in Radiant Globaltech's long position.| KL Technology vs. MyTech Group Bhd | KL Technology vs. Supercomnet Technologies Bhd | KL Technology vs. Sunzen Biotech Bhd | KL Technology vs. Duopharma Biotech Bhd |
| Radiant Globaltech vs. Choo Bee Metal | Radiant Globaltech vs. Lotte Chemical Titan | Radiant Globaltech vs. Impiana Hotels Bhd | Radiant Globaltech vs. Petronas Chemicals Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |