Correlation Between Supercomnet Technologies and Awanbiru Technology
Can any of the company-specific risk be diversified away by investing in both Supercomnet Technologies and Awanbiru Technology 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 Awanbiru Technology 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 Awanbiru Technology Bhd, you can compare the effects of market volatilities on Supercomnet Technologies and Awanbiru Technology 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 Awanbiru Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercomnet Technologies and Awanbiru Technology.
Diversification Opportunities for Supercomnet Technologies and Awanbiru Technology
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Supercomnet and Awanbiru is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Supercomnet Technologies Bhd and Awanbiru Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awanbiru Technology Bhd 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 Awanbiru Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awanbiru Technology Bhd has no effect on the direction of Supercomnet Technologies i.e., Supercomnet Technologies and Awanbiru Technology go up and down completely randomly.
Pair Corralation between Supercomnet Technologies and Awanbiru Technology
Assuming the 90 days trading horizon Supercomnet Technologies is expected to generate 5.37 times less return on investment than Awanbiru Technology. But when comparing it to its historical volatility, Supercomnet Technologies Bhd is 2.63 times less risky than Awanbiru Technology. It trades about 0.01 of its potential returns per unit of risk. Awanbiru Technology Bhd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 34.00 in Awanbiru Technology Bhd on September 4, 2024 and sell it today you would lose (2.00) from holding Awanbiru Technology Bhd or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supercomnet Technologies Bhd vs. Awanbiru Technology Bhd
Performance |
| Timeline |
| Supercomnet Technologies |
| Awanbiru Technology Bhd |
Supercomnet Technologies and Awanbiru Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercomnet Technologies and Awanbiru Technology
The main advantage of trading using opposite Supercomnet Technologies and Awanbiru Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercomnet Technologies position performs unexpectedly, Awanbiru Technology 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 Awanbiru Technology will offset losses from the drop in Awanbiru Technology's long position.| Supercomnet Technologies vs. YX Precious Metals | Supercomnet Technologies vs. Press Metal Bhd | Supercomnet Technologies vs. Eonmetall Group Bhd | Supercomnet Technologies vs. Choo Bee Metal |
| Awanbiru Technology vs. Diversified Gateway Solutions | Awanbiru Technology vs. Supercomnet Technologies Bhd | Awanbiru Technology vs. Radiant Globaltech Bhd | Awanbiru Technology vs. Pantech Group Holdings |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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