Correlation Between TIME Dotcom and Kawan Food
Can any of the company-specific risk be diversified away by investing in both TIME Dotcom and Kawan Food 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 TIME Dotcom and Kawan Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TIME Dotcom Bhd and Kawan Food Bhd, you can compare the effects of market volatilities on TIME Dotcom and Kawan Food 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 TIME Dotcom with a short position of Kawan Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of TIME Dotcom and Kawan Food.
Diversification Opportunities for TIME Dotcom and Kawan Food
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between TIME and Kawan is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding TIME Dotcom Bhd and Kawan Food Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kawan Food Bhd and TIME Dotcom 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 TIME Dotcom Bhd are associated (or correlated) with Kawan Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kawan Food Bhd has no effect on the direction of TIME Dotcom i.e., TIME Dotcom and Kawan Food go up and down completely randomly.
Pair Corralation between TIME Dotcom and Kawan Food
Assuming the 90 days trading horizon TIME Dotcom Bhd is expected to under-perform the Kawan Food. In addition to that, TIME Dotcom is 1.06 times more volatile than Kawan Food Bhd. It trades about -0.01 of its total potential returns per unit of risk. Kawan Food Bhd is currently generating about 0.01 per unit of volatility. If you would invest 165.00 in Kawan Food Bhd on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Kawan Food Bhd or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
TIME Dotcom Bhd vs. Kawan Food Bhd
Performance |
Timeline |
TIME Dotcom Bhd |
Kawan Food Bhd |
TIME Dotcom and Kawan Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TIME Dotcom and Kawan Food
The main advantage of trading using opposite TIME Dotcom and Kawan Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TIME Dotcom position performs unexpectedly, Kawan Food 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 Kawan Food will offset losses from the drop in Kawan Food's long position.TIME Dotcom vs. Kawan Food Bhd | ||
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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