Correlation Between Supercomnet Technologies and Lysaght Galvanized
Can any of the company-specific risk be diversified away by investing in both Supercomnet Technologies and Lysaght Galvanized 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 Lysaght Galvanized 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 Lysaght Galvanized Steel, you can compare the effects of market volatilities on Supercomnet Technologies and Lysaght Galvanized 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 Lysaght Galvanized. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercomnet Technologies and Lysaght Galvanized.
Diversification Opportunities for Supercomnet Technologies and Lysaght Galvanized
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Supercomnet and Lysaght is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Supercomnet Technologies Bhd and Lysaght Galvanized Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lysaght Galvanized Steel 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 Lysaght Galvanized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lysaght Galvanized Steel has no effect on the direction of Supercomnet Technologies i.e., Supercomnet Technologies and Lysaght Galvanized go up and down completely randomly.
Pair Corralation between Supercomnet Technologies and Lysaght Galvanized
Assuming the 90 days trading horizon Supercomnet Technologies Bhd is expected to generate 0.37 times more return on investment than Lysaght Galvanized. However, Supercomnet Technologies Bhd is 2.7 times less risky than Lysaght Galvanized. It trades about 0.04 of its potential returns per unit of risk. Lysaght Galvanized Steel is currently generating about 0.01 per unit of risk. If you would invest 128.00 in Supercomnet Technologies Bhd on October 26, 2024 and sell it today you would earn a total of 4.00 from holding Supercomnet Technologies Bhd or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supercomnet Technologies Bhd vs. Lysaght Galvanized Steel
Performance |
| Timeline |
| Supercomnet Technologies |
| Lysaght Galvanized Steel |
Supercomnet Technologies and Lysaght Galvanized Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercomnet Technologies and Lysaght Galvanized
The main advantage of trading using opposite Supercomnet Technologies and Lysaght Galvanized positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercomnet Technologies position performs unexpectedly, Lysaght Galvanized 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 Lysaght Galvanized will offset losses from the drop in Lysaght Galvanized's long position.| Supercomnet Technologies vs. Central Industrial Corp | Supercomnet Technologies vs. Computer Forms Bhd | Supercomnet Technologies vs. CSC Steel Holdings | Supercomnet Technologies vs. CB Industrial Product |
| Lysaght Galvanized vs. CPE Technology Berhad | Lysaght Galvanized vs. Supercomnet Technologies Bhd | Lysaght Galvanized vs. Sunzen Biotech Bhd | Lysaght Galvanized vs. Carlsberg Brewery Malaysia |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |