Correlation Between K One and Supercomnet Technologies

Can any of the company-specific risk be diversified away by investing in both K One and Supercomnet Technologies 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 K One and Supercomnet Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between K One Technology Bhd and Supercomnet Technologies Bhd, you can compare the effects of market volatilities on K One and Supercomnet Technologies 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 K One with a short position of Supercomnet Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and Supercomnet Technologies.

Diversification Opportunities for K One and Supercomnet Technologies

0.91

Correlation Coefficient

K One  Supercomnet Technologies

Almost no diversification

The 3 months correlation between 0111 and Supercomnet is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and Supercomnet Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercomnet Technologies and K One 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 K One Technology Bhd are associated (or correlated) with Supercomnet Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercomnet Technologies has no effect on the direction of K One i.e., K One and Supercomnet Technologies go up and down completely randomly.

Pair Corralation between K One and Supercomnet Technologies

Assuming the 90 days trading horizon K One Technology Bhd is expected to under-perform the Supercomnet Technologies. In addition to that, K One is 2.27 times more volatile than Supercomnet Technologies Bhd. It trades about -0.1 of its total potential returns per unit of risk. Supercomnet Technologies Bhd is currently generating about -0.2 per unit of volatility. If you would invest  136.00  in Supercomnet Technologies Bhd on December 30, 2024 and sell it today you would lose (28.00) from holding Supercomnet Technologies Bhd or give up 20.59% of portfolio value over 90 days.

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

K One Technology Bhd  vs.  Supercomnet Technologies Bhd

K One Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days K One Technology Bhd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Supercomnet Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Supercomnet Technologies Bhd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with K One and Supercomnet Technologies

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

The idea behind K One Technology Bhd and Supercomnet Technologies Bhd 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..