Correlation Between KL Technology and Unisem M
Can any of the company-specific risk be diversified away by investing in both KL Technology and Unisem M 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 Unisem M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KL Technology and Unisem M Bhd, you can compare the effects of market volatilities on KL Technology and Unisem M 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 Unisem M. Check out your portfolio center. Please also check ongoing floating volatility patterns of KL Technology and Unisem M.
Diversification Opportunities for KL Technology and Unisem M
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KLTE and Unisem is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding KL Technology and Unisem M Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unisem M 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 Unisem M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unisem M Bhd has no effect on the direction of KL Technology i.e., KL Technology and Unisem M go up and down completely randomly.
Pair Corralation between KL Technology and Unisem M
Assuming the 90 days trading horizon KL Technology is expected to generate 0.62 times more return on investment than Unisem M. However, KL Technology is 1.62 times less risky than Unisem M. It trades about 0.0 of its potential returns per unit of risk. Unisem M Bhd is currently generating about 0.0 per unit of risk. If you would invest 6,150 in KL Technology on August 29, 2024 and sell it today you would lose (184.00) from holding KL Technology or give up 2.99% 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. Unisem M Bhd
Performance |
| Timeline |
KL Technology and Unisem M Volatility Contrast
Predicted Return Density |
| Returns |
KL Technology
Pair trading matchups for KL Technology
Unisem M Bhd
Pair trading matchups for Unisem M
Pair Trading with KL Technology and Unisem M
The main advantage of trading using opposite KL Technology and Unisem M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KL Technology position performs unexpectedly, Unisem M 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 Unisem M will offset losses from the drop in Unisem M's long position.| KL Technology vs. Ho Hup Construction | KL Technology vs. Sunway Construction Group | KL Technology vs. FARM FRESH BERHAD | KL Technology vs. Alliance Financial Group |
| Unisem M vs. Malayan Banking Bhd | Unisem M vs. Public Bank Bhd | Unisem M vs. Petronas Chemicals Group | Unisem M vs. IHH Healthcare 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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