Correlation Between Brite Tech and Computer Forms
Can any of the company-specific risk be diversified away by investing in both Brite Tech and Computer Forms 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 Brite Tech and Computer Forms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brite Tech Bhd and Computer Forms Bhd, you can compare the effects of market volatilities on Brite Tech and Computer Forms 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 Brite Tech with a short position of Computer Forms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brite Tech and Computer Forms.
Diversification Opportunities for Brite Tech and Computer Forms
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Brite and Computer is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Brite Tech Bhd and Computer Forms Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Forms Bhd and Brite Tech 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 Brite Tech Bhd are associated (or correlated) with Computer Forms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Forms Bhd has no effect on the direction of Brite Tech i.e., Brite Tech and Computer Forms go up and down completely randomly.
Pair Corralation between Brite Tech and Computer Forms
Assuming the 90 days trading horizon Brite Tech Bhd is expected to generate 0.69 times more return on investment than Computer Forms. However, Brite Tech Bhd is 1.44 times less risky than Computer Forms. It trades about 0.03 of its potential returns per unit of risk. Computer Forms Bhd is currently generating about 0.0 per unit of risk. If you would invest 27.00 in Brite Tech Bhd on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Brite Tech Bhd or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brite Tech Bhd vs. Computer Forms Bhd
Performance |
| Timeline |
| Brite Tech Bhd |
| Computer Forms Bhd |
Brite Tech and Computer Forms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brite Tech and Computer Forms
The main advantage of trading using opposite Brite Tech and Computer Forms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brite Tech position performs unexpectedly, Computer Forms 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 Computer Forms will offset losses from the drop in Computer Forms' long position.| Brite Tech vs. Choo Bee Metal | Brite Tech vs. KPJ Healthcare Bhd | Brite Tech vs. Computer Forms Bhd | Brite Tech vs. Cosmos Technology International |
| Computer Forms vs. Digistar Bhd | Computer Forms vs. Minetech Resources Bhd | Computer Forms vs. OpenSys M Bhd | Computer Forms vs. Insas 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |