Correlation Between Keck Seng and Surety Holdings

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Can any of the company-specific risk be diversified away by investing in both Keck Seng and Surety 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 Keck Seng and Surety Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keck Seng Investments and Surety Holdings Corp, you can compare the effects of market volatilities on Keck Seng and Surety 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 Keck Seng with a short position of Surety Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keck Seng and Surety Holdings.

Diversification Opportunities for Keck Seng and Surety Holdings

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Keck and Surety is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Keck Seng Investments and Surety Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surety Holdings Corp and Keck Seng 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 Keck Seng Investments are associated (or correlated) with Surety Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surety Holdings Corp has no effect on the direction of Keck Seng i.e., Keck Seng and Surety Holdings go up and down completely randomly.

Pair Corralation between Keck Seng and Surety Holdings

If you would invest (100.00) in Surety Holdings Corp on December 30, 2023 and sell it today you would earn a total of  100.00  from holding Surety Holdings Corp or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Keck Seng Investments  vs.  Surety Holdings Corp

 Performance 
       Timeline  
Keck Seng Investments 

Risk-Adjusted Performance

9 of 100

 
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OK
Compared to the overall equity markets, risk-adjusted returns on investments in Keck Seng Investments are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Keck Seng reported solid returns over the last few months and may actually be approaching a breakup point.
Surety Holdings Corp 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Surety Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Surety Holdings is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Keck Seng and Surety Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Keck Seng and Surety Holdings

The main advantage of trading using opposite Keck Seng and Surety Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keck Seng position performs unexpectedly, Surety 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 Surety Holdings will offset losses from the drop in Surety Holdings' long position.
The idea behind Keck Seng Investments and Surety Holdings Corp 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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