Correlation Between KL Technology and YTL Hospitality
Can any of the company-specific risk be diversified away by investing in both KL Technology and YTL Hospitality 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 YTL Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KL Technology and YTL Hospitality REIT, you can compare the effects of market volatilities on KL Technology and YTL Hospitality 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 YTL Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of KL Technology and YTL Hospitality.
Diversification Opportunities for KL Technology and YTL Hospitality
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KLTE and YTL is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding KL Technology and YTL Hospitality REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YTL Hospitality REIT 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 YTL Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YTL Hospitality REIT has no effect on the direction of KL Technology i.e., KL Technology and YTL Hospitality go up and down completely randomly.
Pair Corralation between KL Technology and YTL Hospitality
Assuming the 90 days trading horizon KL Technology is expected to generate 1.36 times more return on investment than YTL Hospitality. However, KL Technology is 1.36 times more volatile than YTL Hospitality REIT. It trades about 0.28 of its potential returns per unit of risk. YTL Hospitality REIT is currently generating about 0.0 per unit of risk. If you would invest 6,032 in KL Technology on September 24, 2024 and sell it today you would earn a total of 370.00 from holding KL Technology or generate 6.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
KL Technology vs. YTL Hospitality REIT
Performance |
Timeline |
KL Technology and YTL Hospitality Volatility Contrast
Predicted Return Density |
Returns |
KL Technology
Pair trading matchups for KL Technology
YTL Hospitality REIT
Pair trading matchups for YTL Hospitality
Pair Trading with KL Technology and YTL Hospitality
The main advantage of trading using opposite KL Technology and YTL Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KL Technology position performs unexpectedly, YTL Hospitality 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 YTL Hospitality will offset losses from the drop in YTL Hospitality's long position.KL Technology vs. YX Precious Metals | KL Technology vs. JF Technology BHD | KL Technology vs. Radiant Globaltech Bhd | KL Technology vs. Duopharma Biotech Bhd |
YTL Hospitality vs. Al Aqar Healthcare | YTL Hospitality vs. OSK Holdings Bhd | YTL Hospitality vs. FARM FRESH BERHAD | YTL Hospitality vs. Pentamaster Bhd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Stocks Directory Find actively traded stocks across global markets | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |