Correlation Between KeppelLimited and Berli Jucker
Can any of the company-specific risk be diversified away by investing in both KeppelLimited and Berli Jucker 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 KeppelLimited and Berli Jucker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keppel Limited and Berli Jucker PCL, you can compare the effects of market volatilities on KeppelLimited and Berli Jucker 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 KeppelLimited with a short position of Berli Jucker. Check out your portfolio center. Please also check ongoing floating volatility patterns of KeppelLimited and Berli Jucker.
Diversification Opportunities for KeppelLimited and Berli Jucker
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between KeppelLimited and Berli is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Keppel Limited and Berli Jucker PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berli Jucker PCL and KeppelLimited 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 Keppel Limited are associated (or correlated) with Berli Jucker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berli Jucker PCL has no effect on the direction of KeppelLimited i.e., KeppelLimited and Berli Jucker go up and down completely randomly.
Pair Corralation between KeppelLimited and Berli Jucker
Assuming the 90 days horizon Keppel Limited is expected to generate 2.8 times more return on investment than Berli Jucker. However, KeppelLimited is 2.8 times more volatile than Berli Jucker PCL. It trades about 0.04 of its potential returns per unit of risk. Berli Jucker PCL is currently generating about -0.04 per unit of risk. If you would invest 635.00 in Keppel Limited on November 7, 2024 and sell it today you would earn a total of 338.00 from holding Keppel Limited or generate 53.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.64% |
| Values | Daily Returns |
Keppel Limited vs. Berli Jucker PCL
Performance |
| Timeline |
| Keppel Limited |
| Berli Jucker PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KeppelLimited and Berli Jucker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KeppelLimited and Berli Jucker
The main advantage of trading using opposite KeppelLimited and Berli Jucker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KeppelLimited position performs unexpectedly, Berli Jucker 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 Berli Jucker will offset losses from the drop in Berli Jucker's long position.| KeppelLimited vs. Singapore Telecommunications PK | KeppelLimited vs. United Overseas Bank | KeppelLimited vs. DBS Group Holdings | KeppelLimited vs. Power Assets Holdings |
| Berli Jucker vs. Teijin | Berli Jucker vs. Ayala Corp ADR | Berli Jucker vs. CK Hutchison Holdings | Berli Jucker vs. 1847 Holdings LLC |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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