Correlation Between Supercomnet Technologies and PMB Technology
Can any of the company-specific risk be diversified away by investing in both Supercomnet Technologies and PMB 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 PMB 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 PMB Technology Bhd, you can compare the effects of market volatilities on Supercomnet Technologies and PMB 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 PMB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercomnet Technologies and PMB Technology.
Diversification Opportunities for Supercomnet Technologies and PMB Technology
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Supercomnet and PMB is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Supercomnet Technologies Bhd and PMB Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PMB 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 PMB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PMB Technology Bhd has no effect on the direction of Supercomnet Technologies i.e., Supercomnet Technologies and PMB Technology go up and down completely randomly.
Pair Corralation between Supercomnet Technologies and PMB Technology
Assuming the 90 days trading horizon Supercomnet Technologies Bhd is expected to under-perform the PMB Technology. But the stock apears to be less risky and, when comparing its historical volatility, Supercomnet Technologies Bhd is 3.07 times less risky than PMB Technology. The stock trades about -0.2 of its potential returns per unit of risk. The PMB Technology Bhd is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 173.00 in PMB Technology Bhd on August 31, 2024 and sell it today you would lose (5.00) from holding PMB Technology Bhd or give up 2.89% 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. PMB Technology Bhd
Performance |
| Timeline |
| Supercomnet Technologies |
| PMB Technology Bhd |
Supercomnet Technologies and PMB Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercomnet Technologies and PMB Technology
The main advantage of trading using opposite Supercomnet Technologies and PMB Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercomnet Technologies position performs unexpectedly, PMB 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 PMB Technology will offset losses from the drop in PMB Technology's long position.| Supercomnet Technologies vs. Greatech Technology Bhd | Supercomnet Technologies vs. Genetec Technology Bhd | Supercomnet Technologies vs. PIE Industrial Bhd | Supercomnet Technologies vs. Dufu Tech Corp |
| PMB Technology vs. Pantech Group Holdings | PMB Technology vs. CSC Steel Holdings | PMB Technology vs. Coraza Integrated Technology | PMB Technology 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |