Correlation Between XOX Technology and Protasco Bhd
Can any of the company-specific risk be diversified away by investing in both XOX Technology and Protasco Bhd 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 Protasco Bhd 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 Protasco Bhd, you can compare the effects of market volatilities on XOX Technology and Protasco Bhd 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 Protasco Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of XOX Technology and Protasco Bhd.
Diversification Opportunities for XOX Technology and Protasco Bhd
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XOX and Protasco is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding XOX Technology Bhd and Protasco Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protasco Bhd 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 Protasco Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protasco Bhd has no effect on the direction of XOX Technology i.e., XOX Technology and Protasco Bhd go up and down completely randomly.
Pair Corralation between XOX Technology and Protasco Bhd
Assuming the 90 days trading horizon XOX Technology Bhd is expected to under-perform the Protasco Bhd. In addition to that, XOX Technology is 1.45 times more volatile than Protasco Bhd. It trades about -0.08 of its total potential returns per unit of risk. Protasco Bhd is currently generating about 0.01 per unit of volatility. If you would invest 35.00 in Protasco Bhd on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Protasco Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
XOX Technology Bhd vs. Protasco Bhd
Performance |
| Timeline |
| XOX Technology Bhd |
| Protasco Bhd |
XOX Technology and Protasco Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XOX Technology and Protasco Bhd
The main advantage of trading using opposite XOX Technology and Protasco Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XOX Technology position performs unexpectedly, Protasco Bhd 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 Protasco Bhd will offset losses from the drop in Protasco Bhd'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 |
| Protasco Bhd vs. Sapura Industrial Bhd | Protasco Bhd vs. Sungei Bagan Rubber | Protasco Bhd vs. Mercury Industries Bhd | Protasco Bhd vs. Al Aqar Healthcare |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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