Correlation Between KL Technology and Enra Group
Can any of the company-specific risk be diversified away by investing in both KL Technology and Enra 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 Enra 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 Enra Group Bhd, you can compare the effects of market volatilities on KL Technology and Enra 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 Enra Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of KL Technology and Enra Group.
Diversification Opportunities for KL Technology and Enra Group
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KLTE and Enra is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding KL Technology and Enra Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enra 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 Enra Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enra Group Bhd has no effect on the direction of KL Technology i.e., KL Technology and Enra Group go up and down completely randomly.
Pair Corralation between KL Technology and Enra Group
Assuming the 90 days trading horizon KL Technology is expected to under-perform the Enra Group. But the index apears to be less risky and, when comparing its historical volatility, KL Technology is 2.3 times less risky than Enra Group. The index trades about 0.0 of its potential returns per unit of risk. The Enra Group Bhd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 59.00 in Enra Group Bhd on September 2, 2024 and sell it today you would earn a total of 5.00 from holding Enra Group Bhd or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
KL Technology vs. Enra Group Bhd
Performance |
| Timeline |
KL Technology and Enra Group Volatility Contrast
Predicted Return Density |
| Returns |
KL Technology
Pair trading matchups for KL Technology
Enra Group Bhd
Pair trading matchups for Enra Group
Pair Trading with KL Technology and Enra Group
The main advantage of trading using opposite KL Technology and Enra Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KL Technology position performs unexpectedly, Enra 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 Enra Group will offset losses from the drop in Enra Group's long position.| KL Technology vs. Awanbiru Technology Bhd | KL Technology vs. Media Prima Bhd | KL Technology vs. Tex Cycle Technology | KL Technology vs. Carlsberg Brewery Malaysia |
| Enra Group vs. Press Metal Bhd | Enra Group vs. Sunway Construction Group | Enra Group vs. Daya Materials Bhd | Enra Group vs. Binasat Communications 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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