Correlation Between Stock Exchange and KL Technology
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and KL Technology 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 Stock Exchange and KL Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and KL Technology, you can compare the effects of market volatilities on Stock Exchange and KL Technology 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 Stock Exchange with a short position of KL Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and KL Technology.
Diversification Opportunities for Stock Exchange and KL Technology
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stock and KLTE is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and KL Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KL Technology and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with KL Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KL Technology has no effect on the direction of Stock Exchange i.e., Stock Exchange and KL Technology go up and down completely randomly.
Pair Corralation between Stock Exchange and KL Technology
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the KL Technology. In addition to that, Stock Exchange is 1.08 times more volatile than KL Technology. It trades about -0.02 of its total potential returns per unit of risk. KL Technology is currently generating about 0.09 per unit of volatility. If you would invest 6,452 in KL Technology on February 5, 2024 and sell it today you would earn a total of 105.00 from holding KL Technology or generate 1.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 89.47% |
Values | Daily Returns |
Stock Exchange Of vs. KL Technology
Performance |
Timeline |
Stock Exchange and KL Technology Volatility Contrast
Predicted Return Density |
Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
KL Technology
Pair trading matchups for KL Technology
Pair Trading with Stock Exchange and KL Technology
The main advantage of trading using opposite Stock Exchange and KL Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, KL Technology 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 KL Technology will offset losses from the drop in KL Technology's long position.Stock Exchange vs. Plan B Media | Stock Exchange vs. Wave Entertainment Public | Stock Exchange vs. Planet Communications Asia | Stock Exchange vs. Silicon Craft Technology |
KL Technology vs. Supercomnet Technologies Bhd | KL Technology vs. Sunzen Biotech Bhd | KL Technology vs. Oriental Food Industries | KL Technology vs. JF Technology 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 CEOs Directory module to screen CEOs from public companies around the world.
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