Correlation Between Supercomnet Technologies and Shangri La
Can any of the company-specific risk be diversified away by investing in both Supercomnet Technologies and Shangri La 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 Shangri La 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 Shangri La Hotels, you can compare the effects of market volatilities on Supercomnet Technologies and Shangri La 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 Shangri La. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercomnet Technologies and Shangri La.
Diversification Opportunities for Supercomnet Technologies and Shangri La
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Supercomnet and Shangri is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Supercomnet Technologies Bhd and Shangri La Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shangri La Hotels 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 Shangri La. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shangri La Hotels has no effect on the direction of Supercomnet Technologies i.e., Supercomnet Technologies and Shangri La go up and down completely randomly.
Pair Corralation between Supercomnet Technologies and Shangri La
Assuming the 90 days trading horizon Supercomnet Technologies Bhd is expected to under-perform the Shangri La. But the stock apears to be less risky and, when comparing its historical volatility, Supercomnet Technologies Bhd is 1.27 times less risky than Shangri La. The stock trades about -0.23 of its potential returns per unit of risk. The Shangri La Hotels is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 200.00 in Shangri La Hotels on October 20, 2024 and sell it today you would earn a total of 2.00 from holding Shangri La Hotels or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supercomnet Technologies Bhd vs. Shangri La Hotels
Performance |
| Timeline |
| Supercomnet Technologies |
| Shangri La Hotels |
Supercomnet Technologies and Shangri La Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercomnet Technologies and Shangri La
The main advantage of trading using opposite Supercomnet Technologies and Shangri La positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercomnet Technologies position performs unexpectedly, Shangri La 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 Shangri La will offset losses from the drop in Shangri La's long position.| Supercomnet Technologies vs. MClean Technologies Bhd | Supercomnet Technologies vs. Kossan Rubber Industries | Supercomnet Technologies vs. Apollo Food Holdings | Supercomnet Technologies vs. Kluang Rubber |
| Shangri La vs. Homeritz Bhd | Shangri La vs. Media Prima Bhd | Shangri La vs. Binasat Communications Bhd | Shangri La vs. Mycron Steel 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| CEOs Directory Screen CEOs from public companies around the world |