Correlation Between KL Technology and PBA Holdings
Can any of the company-specific risk be diversified away by investing in both KL Technology and PBA Holdings 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 PBA Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KL Technology and PBA Holdings Bhd, you can compare the effects of market volatilities on KL Technology and PBA Holdings 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 PBA Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of KL Technology and PBA Holdings.
Diversification Opportunities for KL Technology and PBA Holdings
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between KLTE and PBA is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding KL Technology and PBA Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PBA Holdings 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 PBA Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PBA Holdings Bhd has no effect on the direction of KL Technology i.e., KL Technology and PBA Holdings go up and down completely randomly.
Pair Corralation between KL Technology and PBA Holdings
Assuming the 90 days trading horizon KL Technology is expected to generate 0.84 times more return on investment than PBA Holdings. However, KL Technology is 1.18 times less risky than PBA Holdings. It trades about 0.02 of its potential returns per unit of risk. PBA Holdings Bhd is currently generating about -0.15 per unit of risk. If you would invest 5,931 in KL Technology on August 30, 2024 and sell it today you would earn a total of 35.00 from holding KL Technology or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KL Technology vs. PBA Holdings Bhd
Performance |
| Timeline |
KL Technology and PBA Holdings Volatility Contrast
Predicted Return Density |
| Returns |
KL Technology
Pair trading matchups for KL Technology
PBA Holdings Bhd
Pair trading matchups for PBA Holdings
Pair Trading with KL Technology and PBA Holdings
The main advantage of trading using opposite KL Technology and PBA Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KL Technology position performs unexpectedly, PBA Holdings 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 PBA Holdings will offset losses from the drop in PBA Holdings' long position.| KL Technology vs. Radiant Globaltech Bhd | KL Technology vs. Supercomnet Technologies Bhd | KL Technology vs. Resintech Bhd | KL Technology vs. Dataprep Holdings Bhd |
| PBA Holdings vs. Awanbiru Technology Bhd | PBA Holdings vs. PMB Technology Bhd | PBA Holdings vs. Carlsberg Brewery Malaysia | PBA Holdings vs. Cloudpoint Technology Berhad |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |