Correlation Between XOX Technology and Melewar Industrial
Can any of the company-specific risk be diversified away by investing in both XOX Technology and Melewar Industrial 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 XOX Technology and Melewar Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XOX Technology Bhd and Melewar Industrial Group, you can compare the effects of market volatilities on XOX Technology and Melewar Industrial 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 XOX Technology with a short position of Melewar Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of XOX Technology and Melewar Industrial.
Diversification Opportunities for XOX Technology and Melewar Industrial
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XOX and Melewar is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding XOX Technology Bhd and Melewar Industrial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Melewar Industrial and XOX Technology 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 XOX Technology Bhd are associated (or correlated) with Melewar Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Melewar Industrial has no effect on the direction of XOX Technology i.e., XOX Technology and Melewar Industrial go up and down completely randomly.
Pair Corralation between XOX Technology and Melewar Industrial
Assuming the 90 days trading horizon XOX Technology Bhd is expected to under-perform the Melewar Industrial. In addition to that, XOX Technology is 1.57 times more volatile than Melewar Industrial Group. It trades about -0.08 of its total potential returns per unit of risk. Melewar Industrial Group is currently generating about 0.01 per unit of volatility. If you would invest 22.00 in Melewar Industrial Group on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Melewar Industrial Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
XOX Technology Bhd vs. Melewar Industrial Group
Performance |
| Timeline |
| XOX Technology Bhd |
| Melewar Industrial |
XOX Technology and Melewar Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XOX Technology and Melewar Industrial
The main advantage of trading using opposite XOX Technology and Melewar Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XOX Technology position performs unexpectedly, Melewar Industrial 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 Melewar Industrial will offset losses from the drop in Melewar Industrial's long position.| XOX Technology vs. Dagang Nexchange Bhd | XOX Technology vs. Datasonic Group Bhd | XOX Technology vs. Awanbiru Technology Bhd | XOX Technology vs. Dataprep Holdings Bhd |
| Melewar Industrial vs. Choo Bee Metal | Melewar Industrial vs. Carlsberg Brewery Malaysia | Melewar Industrial vs. Cloudpoint Technology Berhad | Melewar Industrial vs. Magni Tech Industries |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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