Correlation Between Supercomnet Technologies and Pantech Group
Can any of the company-specific risk be diversified away by investing in both Supercomnet Technologies and Pantech Group 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 Supercomnet Technologies and Pantech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supercomnet Technologies Bhd and Pantech Group Holdings, you can compare the effects of market volatilities on Supercomnet Technologies and Pantech Group 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 Supercomnet Technologies with a short position of Pantech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercomnet Technologies and Pantech Group.
Diversification Opportunities for Supercomnet Technologies and Pantech Group
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Supercomnet and Pantech is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Supercomnet Technologies Bhd and Pantech Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pantech Group Holdings and Supercomnet Technologies 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 Supercomnet Technologies Bhd are associated (or correlated) with Pantech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pantech Group Holdings has no effect on the direction of Supercomnet Technologies i.e., Supercomnet Technologies and Pantech Group go up and down completely randomly.
Pair Corralation between Supercomnet Technologies and Pantech Group
Assuming the 90 days trading horizon Supercomnet Technologies Bhd is expected to under-perform the Pantech Group. In addition to that, Supercomnet Technologies is 1.43 times more volatile than Pantech Group Holdings. It trades about -0.11 of its total potential returns per unit of risk. Pantech Group Holdings is currently generating about -0.04 per unit of volatility. If you would invest 98.00 in Pantech Group Holdings on September 3, 2024 and sell it today you would lose (2.00) from holding Pantech Group Holdings or give up 2.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supercomnet Technologies Bhd vs. Pantech Group Holdings
Performance |
| Timeline |
| Supercomnet Technologies |
| Pantech Group Holdings |
Supercomnet Technologies and Pantech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercomnet Technologies and Pantech Group
The main advantage of trading using opposite Supercomnet Technologies and Pantech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercomnet Technologies position performs unexpectedly, Pantech Group 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 Pantech Group will offset losses from the drop in Pantech Group's long position.| Supercomnet Technologies vs. Binasat Communications Bhd | Supercomnet Technologies vs. Awanbiru Technology Bhd | Supercomnet Technologies vs. Tex Cycle Technology | Supercomnet Technologies vs. Homeritz Bhd |
| Pantech Group vs. Press Metal Bhd | Pantech Group vs. CSC Steel Holdings | Pantech Group vs. Malaysia Steel Works | Pantech Group vs. Choo Bee Metal |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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