Correlation Between CHRYSALIS INVESTMENTS and Keck Seng

Can any of the company-specific risk be diversified away by investing in both CHRYSALIS INVESTMENTS and Keck Seng 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 CHRYSALIS INVESTMENTS and Keck Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CHRYSALIS INVESTMENTS LTD and Keck Seng Investments, you can compare the effects of market volatilities on CHRYSALIS INVESTMENTS and Keck Seng 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 CHRYSALIS INVESTMENTS with a short position of Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHRYSALIS INVESTMENTS and Keck Seng.

Diversification Opportunities for CHRYSALIS INVESTMENTS and Keck Seng

0.2

Correlation Coefficient

CHRYSALIS INVESTMENTS  Keck Seng

Modest diversification

The 3 months correlation between CHRYSALIS and Keck is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding CHRYSALIS INVESTMENTS LTD and Keck Seng Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keck Seng Investments and CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS LTD are associated (or correlated) with Keck Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keck Seng Investments has no effect on the direction of CHRYSALIS INVESTMENTS i.e., CHRYSALIS INVESTMENTS and Keck Seng go up and down completely randomly.

Pair Corralation between CHRYSALIS INVESTMENTS and Keck Seng

Assuming the 90 days horizon CHRYSALIS INVESTMENTS LTD is expected to generate 0.54 times more return on investment than Keck Seng. However, CHRYSALIS INVESTMENTS LTD is 1.84 times less risky than Keck Seng. It trades about 0.06 of its potential returns per unit of risk. Keck Seng Investments is currently generating about -0.01 per unit of risk. If you would invest  112.00  in CHRYSALIS INVESTMENTS LTD on March 20, 2025 and sell it today you would earn a total of  8.00  from holding CHRYSALIS INVESTMENTS LTD or generate 7.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CHRYSALIS INVESTMENTS LTD  vs.  Keck Seng Investments

CHRYSALIS INVESTMENTS LTD

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CHRYSALIS INVESTMENTS LTD are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, CHRYSALIS INVESTMENTS may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Keck Seng Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Keck Seng Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Keck Seng is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CHRYSALIS INVESTMENTS and Keck Seng

The main advantage of trading using opposite CHRYSALIS INVESTMENTS and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHRYSALIS INVESTMENTS position performs unexpectedly, Keck Seng 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 Keck Seng will offset losses from the drop in Keck Seng's long position.

The idea behind CHRYSALIS INVESTMENTS LTD and Keck Seng Investments pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.