Correlation Between Keppel and Yoma Strategic
Can any of the company-specific risk be diversified away by investing in both Keppel and Yoma Strategic 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 Keppel and Yoma Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keppel Limited and Yoma Strategic Holdings, you can compare the effects of market volatilities on Keppel and Yoma Strategic 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 Keppel with a short position of Yoma Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keppel and Yoma Strategic.
Diversification Opportunities for Keppel and Yoma Strategic
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Keppel and Yoma is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Keppel Limited and Yoma Strategic Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoma Strategic Holdings and Keppel 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 Yoma Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoma Strategic Holdings has no effect on the direction of Keppel i.e., Keppel and Yoma Strategic go up and down completely randomly.
Pair Corralation between Keppel and Yoma Strategic
Assuming the 90 days horizon Keppel is expected to generate 5.78 times less return on investment than Yoma Strategic. But when comparing it to its historical volatility, Keppel Limited is 2.79 times less risky than Yoma Strategic. It trades about 0.04 of its potential returns per unit of risk. Yoma Strategic Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4.32 in Yoma Strategic Holdings on September 20, 2024 and sell it today you would earn a total of 1.50 from holding Yoma Strategic Holdings or generate 34.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keppel Limited vs. Yoma Strategic Holdings
Performance |
| Timeline |
| Keppel Limited |
| Yoma Strategic Holdings |
Keppel and Yoma Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keppel and Yoma Strategic
The main advantage of trading using opposite Keppel and Yoma Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keppel position performs unexpectedly, Yoma Strategic 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 Yoma Strategic will offset losses from the drop in Yoma Strategic's long position.| Keppel vs. Arca Continental SAB | Keppel vs. Becle SA de | Keppel vs. Aquagold International | Keppel vs. Morningstar Unconstrained Allocation |
| Yoma Strategic vs. Teijin | Yoma Strategic vs. Halma plc | Yoma Strategic vs. Keppel Limited | Yoma Strategic vs. Ayala Corp ADR |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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