Correlation Between SBF 120 and KL Technology
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By analyzing existing cross correlation between SBF 120 and KL Technology, you can compare the effects of market volatilities on SBF 120 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 SBF 120 with a short position of KL Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and KL Technology.
Diversification Opportunities for SBF 120 and KL Technology
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SBF and KLTE is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and KL Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KL Technology and SBF 120 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 SBF 120 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 SBF 120 i.e., SBF 120 and KL Technology go up and down completely randomly.
Pair Corralation between SBF 120 and KL Technology
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the KL Technology. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 1.33 times less risky than KL Technology. The index trades about -0.12 of its potential returns per unit of risk. The KL Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,477 in KL Technology on February 1, 2024 and sell it today you would earn a total of 39.00 from holding KL Technology or generate 0.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
SBF 120 vs. KL Technology
Performance |
Timeline |
SBF 120 and KL Technology Volatility Contrast
Predicted Return Density |
Returns |
SBF 120
Pair trading matchups for SBF 120
KL Technology
Pair trading matchups for KL Technology
Pair Trading with SBF 120 and KL Technology
The main advantage of trading using opposite SBF 120 and KL Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 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.SBF 120 vs. Reworld Media | SBF 120 vs. Compagnie Plastic Omnium | SBF 120 vs. X Fab Silicon | SBF 120 vs. ZCCM Investments Holdings |
KL Technology vs. Public Bank Bhd | KL Technology vs. Hong Leong Bank | KL Technology vs. Sports Toto Berhad | KL Technology vs. Apollo Food Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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