Correlation Between TRADELINK ELECTRON and Keck Seng
Can any of the company-specific risk be diversified away by investing in both TRADELINK ELECTRON 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 TRADELINK ELECTRON and Keck Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADELINK ELECTRON and Keck Seng Investments, you can compare the effects of market volatilities on TRADELINK ELECTRON 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 TRADELINK ELECTRON with a short position of Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADELINK ELECTRON and Keck Seng.
Diversification Opportunities for TRADELINK ELECTRON and Keck Seng
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TRADELINK and Keck is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TRADELINK ELECTRON 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 TRADELINK ELECTRON 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 TRADELINK ELECTRON 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 TRADELINK ELECTRON i.e., TRADELINK ELECTRON and Keck Seng go up and down completely randomly.
Pair Corralation between TRADELINK ELECTRON and Keck Seng
Assuming the 90 days trading horizon TRADELINK ELECTRON is expected to generate 0.77 times more return on investment than Keck Seng. However, TRADELINK ELECTRON is 1.31 times less risky than Keck Seng. It trades about 0.09 of its potential returns per unit of risk. Keck Seng Investments is currently generating about 0.05 per unit of risk. If you would invest 7.45 in TRADELINK ELECTRON on October 18, 2024 and sell it today you would earn a total of 3.55 from holding TRADELINK ELECTRON or generate 47.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
TRADELINK ELECTRON vs. Keck Seng Investments
Performance |
| Timeline |
| TRADELINK ELECTRON |
| Keck Seng Investments |
TRADELINK ELECTRON and Keck Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADELINK ELECTRON and Keck Seng
The main advantage of trading using opposite TRADELINK ELECTRON and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADELINK ELECTRON 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.| TRADELINK ELECTRON vs. GREENX METALS LTD | TRADELINK ELECTRON vs. Scottish Mortgage Investment | TRADELINK ELECTRON vs. JLF INVESTMENT | TRADELINK ELECTRON vs. MAGNUM MINING EXP |
| Keck Seng vs. SOEDER SPORTFISKE AB | Keck Seng vs. Air Transport Services | Keck Seng vs. SALESFORCE INC CDR | Keck Seng vs. TRADELINK ELECTRON |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |