Correlation Between Keck Seng and Harn Len
Can any of the company-specific risk be diversified away by investing in both Keck Seng and Harn Len 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 Keck Seng and Harn Len into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keck Seng Malaysia and Harn Len, you can compare the effects of market volatilities on Keck Seng and Harn Len 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 Keck Seng with a short position of Harn Len. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keck Seng and Harn Len.
Diversification Opportunities for Keck Seng and Harn Len
Very good diversification
The 3 months correlation between Keck and Harn is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Keck Seng Malaysia and Harn Len in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harn Len and Keck Seng 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 Keck Seng Malaysia are associated (or correlated) with Harn Len. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harn Len has no effect on the direction of Keck Seng i.e., Keck Seng and Harn Len go up and down completely randomly.
Pair Corralation between Keck Seng and Harn Len
Assuming the 90 days trading horizon Keck Seng Malaysia is expected to under-perform the Harn Len. But the stock apears to be less risky and, when comparing its historical volatility, Keck Seng Malaysia is 2.61 times less risky than Harn Len. The stock trades about -0.09 of its potential returns per unit of risk. The Harn Len is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 37.00 in Harn Len on September 25, 2024 and sell it today you would earn a total of 2.00 from holding Harn Len or generate 5.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Keck Seng Malaysia vs. Harn Len
Performance |
Timeline |
Keck Seng Malaysia |
Harn Len |
Keck Seng and Harn Len Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Keck Seng and Harn Len
The main advantage of trading using opposite Keck Seng and Harn Len positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keck Seng position performs unexpectedly, Harn Len 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 Harn Len will offset losses from the drop in Harn Len's long position.Keck Seng vs. Cengild Medical Berhad | Keck Seng vs. Hong Leong Bank | Keck Seng vs. Media Prima Bhd | Keck Seng vs. Public Bank Bhd |
Harn Len vs. YTL Hospitality REIT | Harn Len vs. Nova Wellness Group | Harn Len vs. Shangri La Hotels | Harn Len vs. Kossan Rubber Industries |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |