Correlation Between CITIC Securities and Keck Seng

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

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

Diversification Opportunities for CITIC Securities and Keck Seng

0.57

Correlation Coefficient

CITIC Securities  Keck Seng

Very weak diversification

The 3 months correlation between CITIC and Keck is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Securities 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 CITIC Securities 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 CITIC Securities 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 CITIC Securities i.e., CITIC Securities and Keck Seng go up and down completely randomly.

Pair Corralation between CITIC Securities and Keck Seng

Assuming the 90 days horizon CITIC Securities is expected to generate 0.54 times more return on investment than Keck Seng. However, CITIC Securities is 1.87 times less risky than Keck Seng. It trades about 0.24 of its potential returns per unit of risk. Keck Seng Investments is currently generating about 0.09 per unit of risk. If you would invest  203.00  in CITIC Securities on April 24, 2025 and sell it today you would earn a total of  91.00  from holding CITIC Securities or generate 44.83% return on investment over 90 days.

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

CITIC Securities  vs.  Keck Seng Investments

CITIC Securities

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Securities are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CITIC Securities reported solid returns over the last few months and may actually be approaching a breakup point.

Keck Seng Investments

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Keck Seng Investments are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Keck Seng reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CITIC Securities and Keck Seng

The main advantage of trading using opposite CITIC Securities and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Securities 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 CITIC Securities 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.