Correlation Between KL Technology and ATA IMS
Can any of the company-specific risk be diversified away by investing in both KL Technology and ATA IMS 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 ATA IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KL Technology and ATA IMS Bhd, you can compare the effects of market volatilities on KL Technology and ATA IMS 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 ATA IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of KL Technology and ATA IMS.
Diversification Opportunities for KL Technology and ATA IMS
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KLTE and ATA is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding KL Technology and ATA IMS Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATA IMS 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 ATA IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATA IMS Bhd has no effect on the direction of KL Technology i.e., KL Technology and ATA IMS go up and down completely randomly.
Pair Corralation between KL Technology and ATA IMS
Assuming the 90 days trading horizon KL Technology is expected to generate 0.45 times more return on investment than ATA IMS. However, KL Technology is 2.23 times less risky than ATA IMS. It trades about 0.03 of its potential returns per unit of risk. ATA IMS Bhd is currently generating about -0.09 per unit of risk. If you would invest 5,883 in KL Technology on August 30, 2024 and sell it today you would earn a total of 83.00 from holding KL Technology or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
KL Technology vs. ATA IMS Bhd
Performance |
| Timeline |
KL Technology and ATA IMS Volatility Contrast
Predicted Return Density |
| Returns |
KL Technology
Pair trading matchups for KL Technology
ATA IMS Bhd
Pair trading matchups for ATA IMS
Pair Trading with KL Technology and ATA IMS
The main advantage of trading using opposite KL Technology and ATA IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KL Technology position performs unexpectedly, ATA IMS 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 ATA IMS will offset losses from the drop in ATA IMS's 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 |
| ATA IMS vs. DC HEALTHCARE HOLDINGS | ATA IMS vs. TAS Offshore Bhd | ATA IMS vs. Southern Steel Bhd | ATA IMS vs. Press Metal 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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