Correlation Between Kluang Rubber and FGV Holdings
Can any of the company-specific risk be diversified away by investing in both Kluang Rubber and FGV Holdings 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 Kluang Rubber and FGV Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kluang Rubber and FGV Holdings Bhd, you can compare the effects of market volatilities on Kluang Rubber and FGV Holdings 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 Kluang Rubber with a short position of FGV Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kluang Rubber and FGV Holdings.
Diversification Opportunities for Kluang Rubber and FGV Holdings
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kluang and FGV is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kluang Rubber and FGV Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FGV Holdings Bhd and Kluang Rubber 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 Kluang Rubber are associated (or correlated) with FGV Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FGV Holdings Bhd has no effect on the direction of Kluang Rubber i.e., Kluang Rubber and FGV Holdings go up and down completely randomly.
Pair Corralation between Kluang Rubber and FGV Holdings
Assuming the 90 days trading horizon Kluang Rubber is expected to generate 1.17 times more return on investment than FGV Holdings. However, Kluang Rubber is 1.17 times more volatile than FGV Holdings Bhd. It trades about 0.05 of its potential returns per unit of risk. FGV Holdings Bhd is currently generating about 0.0 per unit of risk. If you would invest 398.00 in Kluang Rubber on September 26, 2024 and sell it today you would earn a total of 161.00 from holding Kluang Rubber or generate 40.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 89.69% |
Values | Daily Returns |
Kluang Rubber vs. FGV Holdings Bhd
Performance |
Timeline |
Kluang Rubber |
FGV Holdings Bhd |
Kluang Rubber and FGV Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kluang Rubber and FGV Holdings
The main advantage of trading using opposite Kluang Rubber and FGV Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kluang Rubber position performs unexpectedly, FGV Holdings 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 FGV Holdings will offset losses from the drop in FGV Holdings' long position.Kluang Rubber vs. Nestle Bhd | Kluang Rubber vs. PPB Group Bhd | Kluang Rubber vs. IOI Bhd | Kluang Rubber vs. FGV Holdings Bhd |
FGV Holdings vs. Computer Forms Bhd | FGV Holdings vs. Kluang Rubber | FGV Holdings vs. Eversafe Rubber Bhd | FGV Holdings vs. Binasat Communications 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
CEOs Directory Screen CEOs from public companies around the world | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |