Correlation Between TIME Dotcom and Kawan Food

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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

TIMEKawanDiversified AwayTIMEKawanDiversified Away100%
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 Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

TIME Dotcom Bhd  vs.  Kawan Food Bhd

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 02468
JavaScript chart by amCharts 3.21.155031 7216
       Timeline  
TIME Dotcom Bhd 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days TIME Dotcom Bhd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, TIME Dotcom is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec4.654.74.754.84.854.94.9555.05
Kawan Food Bhd 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Kawan Food Bhd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Kawan Food is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec1.621.641.661.681.71.721.741.76

TIME Dotcom and Kawan Food Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.13-3.1-2.06-1.020.01731.042.083.114.15 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.155031 7216
       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.
The idea behind TIME Dotcom Bhd and Kawan Food 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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