Correlation Between OFFICE DEPOT and Keck Seng
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and Keck Seng 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 OFFICE DEPOT and Keck Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and Keck Seng Investments, you can compare the effects of market volatilities on OFFICE DEPOT and Keck Seng 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 OFFICE DEPOT with a short position of Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and Keck Seng.
Diversification Opportunities for OFFICE DEPOT and Keck Seng
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and Keck is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and Keck Seng Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keck Seng Investments and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with Keck Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keck Seng Investments has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and Keck Seng go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and Keck Seng
If you would invest 24.00 in Keck Seng Investments on November 1, 2024 and sell it today you would earn a total of 2.00 from holding Keck Seng Investments or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. Keck Seng Investments
Performance |
| Timeline |
| OFFICE DEPOT |
| Keck Seng Investments |
OFFICE DEPOT and Keck Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and Keck Seng
The main advantage of trading using opposite OFFICE DEPOT and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, Keck Seng 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 Keck Seng will offset losses from the drop in Keck Seng's long position.| OFFICE DEPOT vs. Fuji Media Holdings | OFFICE DEPOT vs. CLOVER HEALTH INV | OFFICE DEPOT vs. CVS Health | OFFICE DEPOT vs. National Health Investors |
| Keck Seng vs. OFFICE DEPOT | Keck Seng vs. Iridium Communications | Keck Seng vs. ecotel communication ag | Keck Seng vs. Singapore Telecommunications Limited |
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 CEOs Directory module to screen CEOs from public companies around the world.
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