Correlation Between KL Technology and MyTech Group
Can any of the company-specific risk be diversified away by investing in both KL Technology and MyTech Group 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 MyTech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KL Technology and MyTech Group Bhd, you can compare the effects of market volatilities on KL Technology and MyTech Group 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 MyTech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of KL Technology and MyTech Group.
Diversification Opportunities for KL Technology and MyTech Group
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KLTE and MyTech is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding KL Technology and MyTech Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyTech Group 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 MyTech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyTech Group Bhd has no effect on the direction of KL Technology i.e., KL Technology and MyTech Group go up and down completely randomly.
Pair Corralation between KL Technology and MyTech Group
Assuming the 90 days trading horizon KL Technology is expected to generate 0.92 times more return on investment than MyTech Group. However, KL Technology is 1.08 times less risky than MyTech Group. It trades about -0.01 of its potential returns per unit of risk. MyTech Group Bhd is currently generating about -0.12 per unit of risk. If you would invest 5,951 in KL Technology on August 25, 2024 and sell it today you would lose (35.00) from holding KL Technology or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
KL Technology vs. MyTech Group Bhd
Performance |
| Timeline |
KL Technology and MyTech Group Volatility Contrast
Predicted Return Density |
| Returns |
KL Technology
Pair trading matchups for KL Technology
MyTech Group Bhd
Pair trading matchups for MyTech Group
Pair Trading with KL Technology and MyTech Group
The main advantage of trading using opposite KL Technology and MyTech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KL Technology position performs unexpectedly, MyTech Group 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 MyTech Group will offset losses from the drop in MyTech Group'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 |
| MyTech Group vs. Greatech Technology Bhd | MyTech Group vs. Uwc Bhd | MyTech Group vs. Genetec Technology Bhd | MyTech Group vs. PIE Industrial 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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