Correlation Between KL Technology and Stock Exchange
Can any of the company-specific risk be diversified away by investing in both KL Technology and Stock Exchange 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 Stock Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KL Technology and Stock Exchange Of, you can compare the effects of market volatilities on KL Technology and Stock Exchange 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 Stock Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of KL Technology and Stock Exchange.
Diversification Opportunities for KL Technology and Stock Exchange
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KLTE and Stock is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding KL Technology and Stock Exchange Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Exchange 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 Stock Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Exchange has no effect on the direction of KL Technology i.e., KL Technology and Stock Exchange go up and down completely randomly.
Pair Corralation between KL Technology and Stock Exchange
Assuming the 90 days trading horizon KL Technology is expected to generate 0.93 times more return on investment than Stock Exchange. However, KL Technology is 1.07 times less risky than Stock Exchange. It trades about 0.03 of its potential returns per unit of risk. Stock Exchange Of is currently generating about -0.02 per unit of risk. If you would invest 6,459 in KL Technology on January 30, 2024 and sell it today you would earn a total of 42.00 from holding KL Technology or generate 0.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 97.5% |
Values | Daily Returns |
KL Technology vs. Stock Exchange Of
Performance |
Timeline |
KL Technology and Stock Exchange Volatility Contrast
Predicted Return Density |
Returns |
KL Technology
Pair trading matchups for KL Technology
Stock Exchange Of
Pair trading matchups for Stock Exchange
Pair Trading with KL Technology and Stock Exchange
The main advantage of trading using opposite KL Technology and Stock Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KL Technology position performs unexpectedly, Stock Exchange 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 Stock Exchange will offset losses from the drop in Stock Exchange's long position.KL Technology vs. Melewar Industrial Group | KL Technology vs. CB Industrial Product | KL Technology vs. Uchi Technologies Bhd | KL Technology vs. Sapura Industrial Bhd |
Stock Exchange vs. KCE Electronics Public | Stock Exchange vs. Stars Microelectronics Public | Stock Exchange vs. Globlex Holding Management | Stock Exchange vs. Mena Transport Public |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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