Correlation Between Kobay Tech and Al Aqar
Can any of the company-specific risk be diversified away by investing in both Kobay Tech and Al Aqar 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 Kobay Tech and Al Aqar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kobay Tech Bhd and Al Aqar Healthcare, you can compare the effects of market volatilities on Kobay Tech and Al Aqar 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 Kobay Tech with a short position of Al Aqar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kobay Tech and Al Aqar.
Diversification Opportunities for Kobay Tech and Al Aqar
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kobay and 5116 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kobay Tech Bhd and Al Aqar Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Aqar Healthcare and Kobay Tech 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 Kobay Tech Bhd are associated (or correlated) with Al Aqar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Aqar Healthcare has no effect on the direction of Kobay Tech i.e., Kobay Tech and Al Aqar go up and down completely randomly.
Pair Corralation between Kobay Tech and Al Aqar
Assuming the 90 days trading horizon Kobay Tech Bhd is expected to generate 3.13 times more return on investment than Al Aqar. However, Kobay Tech is 3.13 times more volatile than Al Aqar Healthcare. It trades about 0.24 of its potential returns per unit of risk. Al Aqar Healthcare is currently generating about -0.05 per unit of risk. If you would invest 129.00 in Kobay Tech Bhd on September 26, 2024 and sell it today you would earn a total of 26.00 from holding Kobay Tech Bhd or generate 20.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kobay Tech Bhd vs. Al Aqar Healthcare
Performance |
Timeline |
Kobay Tech Bhd |
Al Aqar Healthcare |
Kobay Tech and Al Aqar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kobay Tech and Al Aqar
The main advantage of trading using opposite Kobay Tech and Al Aqar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kobay Tech position performs unexpectedly, Al Aqar 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 Al Aqar will offset losses from the drop in Al Aqar's long position.Kobay Tech vs. Greatech Technology Bhd | Kobay Tech vs. Uwc Bhd | Kobay Tech vs. Genetec Technology Bhd | Kobay Tech vs. PIE Industrial Bhd |
Al Aqar vs. YTL Hospitality REIT | Al Aqar vs. OSK Holdings Bhd | Al Aqar vs. FARM FRESH BERHAD | Al Aqar vs. Pentamaster 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |