Correlation Between INDIKA ENERGY and Keck Seng
Can any of the company-specific risk be diversified away by investing in both INDIKA ENERGY and Keck Seng 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 INDIKA ENERGY and Keck Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INDIKA ENERGY and Keck Seng Investments, you can compare the effects of market volatilities on INDIKA ENERGY and Keck Seng 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 INDIKA ENERGY with a short position of Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDIKA ENERGY and Keck Seng.
Diversification Opportunities for INDIKA ENERGY and Keck Seng
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INDIKA and Keck is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding INDIKA ENERGY and Keck Seng Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keck Seng Investments and INDIKA ENERGY 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 INDIKA ENERGY are associated (or correlated) with Keck Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keck Seng Investments has no effect on the direction of INDIKA ENERGY i.e., INDIKA ENERGY and Keck Seng go up and down completely randomly.
Pair Corralation between INDIKA ENERGY and Keck Seng
Assuming the 90 days trading horizon INDIKA ENERGY is expected to generate 0.59 times more return on investment than Keck Seng. However, INDIKA ENERGY is 1.71 times less risky than Keck Seng. It trades about 0.25 of its potential returns per unit of risk. Keck Seng Investments is currently generating about 0.0 per unit of risk. If you would invest 7.45 in INDIKA ENERGY on July 20, 2025 and sell it today you would earn a total of 4.55 from holding INDIKA ENERGY or generate 61.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
INDIKA ENERGY vs. Keck Seng Investments
Performance |
| Timeline |
| INDIKA ENERGY |
| Keck Seng Investments |
INDIKA ENERGY and Keck Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDIKA ENERGY and Keck Seng
The main advantage of trading using opposite INDIKA ENERGY and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDIKA ENERGY position performs unexpectedly, Keck Seng 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 Keck Seng will offset losses from the drop in Keck Seng's long position.| INDIKA ENERGY vs. EAGLE MATERIALS | INDIKA ENERGY vs. THRACE PLASTICS | INDIKA ENERGY vs. NEWELL RUBBERMAID | INDIKA ENERGY vs. Cairo Communication SpA |
| Keck Seng vs. TITANIUM TRANSPORTGROUP | Keck Seng vs. BRAEMAR HOTELS RES | Keck Seng vs. SPORT LISBOA E | Keck Seng vs. MIRAMAR HOTEL INV |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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