Correlation Between Public Packages and K One
Can any of the company-specific risk be diversified away by investing in both Public Packages and K One 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 Public Packages and K One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Packages Holdings and K One Technology Bhd, you can compare the effects of market volatilities on Public Packages and K One 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 Public Packages with a short position of K One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Packages and K One.
Diversification Opportunities for Public Packages and K One
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Public and 0111 is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Public Packages Holdings and K One Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K One Technology and Public Packages 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 Public Packages Holdings are associated (or correlated) with K One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K One Technology has no effect on the direction of Public Packages i.e., Public Packages and K One go up and down completely randomly.
Pair Corralation between Public Packages and K One
Assuming the 90 days trading horizon Public Packages Holdings is expected to under-perform the K One. But the stock apears to be less risky and, when comparing its historical volatility, Public Packages Holdings is 2.9 times less risky than K One. The stock trades about -0.01 of its potential returns per unit of risk. The K One Technology Bhd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 18.00 in K One Technology Bhd on September 26, 2024 and sell it today you would earn a total of 0.00 from holding K One Technology Bhd or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Public Packages Holdings vs. K One Technology Bhd
Performance |
Timeline |
Public Packages Holdings |
K One Technology |
Public Packages and K One Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Public Packages and K One
The main advantage of trading using opposite Public Packages and K One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Packages position performs unexpectedly, K One 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 K One will offset losses from the drop in K One's long position.Public Packages vs. Malayan Banking Bhd | Public Packages vs. Public Bank Bhd | Public Packages vs. Petronas Chemicals Group | Public Packages vs. Tenaga Nasional Bhd |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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