Correlation Between KL Technology and Coraza Integrated
Can any of the company-specific risk be diversified away by investing in both KL Technology and Coraza Integrated 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 Coraza Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KL Technology and Coraza Integrated Technology, you can compare the effects of market volatilities on KL Technology and Coraza Integrated 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 Coraza Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of KL Technology and Coraza Integrated.
Diversification Opportunities for KL Technology and Coraza Integrated
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KLTE and Coraza is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding KL Technology and Coraza Integrated Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coraza Integrated 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 Coraza Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coraza Integrated has no effect on the direction of KL Technology i.e., KL Technology and Coraza Integrated go up and down completely randomly.
Pair Corralation between KL Technology and Coraza Integrated
Assuming the 90 days trading horizon KL Technology is expected to under-perform the Coraza Integrated. But the index apears to be less risky and, when comparing its historical volatility, KL Technology is 2.77 times less risky than Coraza Integrated. The index trades about -0.1 of its potential returns per unit of risk. The Coraza Integrated Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 56.00 in Coraza Integrated Technology on August 31, 2024 and sell it today you would lose (9.00) from holding Coraza Integrated Technology or give up 16.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KL Technology vs. Coraza Integrated Technology
Performance |
| Timeline |
KL Technology and Coraza Integrated Volatility Contrast
Predicted Return Density |
| Returns |
KL Technology
Pair trading matchups for KL Technology
Coraza Integrated Technology
Pair trading matchups for Coraza Integrated
Pair Trading with KL Technology and Coraza Integrated
The main advantage of trading using opposite KL Technology and Coraza Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KL Technology position performs unexpectedly, Coraza Integrated 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 Coraza Integrated will offset losses from the drop in Coraza Integrated's long position.| KL Technology vs. Resintech Bhd | KL Technology vs. Aurelius Technologies Bhd | KL Technology vs. Cloudpoint Technology Berhad | KL Technology vs. Choo Bee Metal |
| Coraza Integrated vs. ONETECH SOLUTIONS HOLDINGS | Coraza Integrated vs. Uchi Technologies Bhd | Coraza Integrated vs. Radiant Globaltech Bhd | Coraza Integrated vs. Awanbiru Technology Bhd |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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