Correlation Between Digistar Bhd and Computer Forms
Can any of the company-specific risk be diversified away by investing in both Digistar Bhd 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 Digistar Bhd and Computer Forms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digistar Bhd and Computer Forms Bhd, you can compare the effects of market volatilities on Digistar Bhd 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 Digistar Bhd with a short position of Computer Forms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digistar Bhd and Computer Forms.
Diversification Opportunities for Digistar Bhd and Computer Forms
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digistar and Computer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Digistar 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 Digistar Bhd 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 Digistar 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 Digistar Bhd i.e., Digistar Bhd and Computer Forms go up and down completely randomly.
Pair Corralation between Digistar Bhd and Computer Forms
Assuming the 90 days trading horizon Digistar Bhd is expected to generate 2.03 times more return on investment than Computer Forms. However, Digistar Bhd is 2.03 times more volatile than Computer Forms Bhd. It trades about 0.03 of its potential returns per unit of risk. Computer Forms Bhd is currently generating about -0.1 per unit of risk. If you would invest 5.50 in Digistar Bhd on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Digistar Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digistar Bhd vs. Computer Forms Bhd
Performance |
| Timeline |
| Digistar Bhd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Computer Forms Bhd |
Digistar Bhd and Computer Forms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digistar Bhd and Computer Forms
The main advantage of trading using opposite Digistar Bhd and Computer Forms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digistar Bhd 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.| Digistar Bhd vs. Sports Toto Berhad | Digistar Bhd vs. ES Ceramics Technology | Digistar Bhd vs. ONETECH SOLUTIONS HOLDINGS | Digistar Bhd vs. Coraza Integrated Technology |
| Computer Forms vs. Coraza Integrated Technology | Computer Forms vs. MClean Technologies Bhd | Computer Forms vs. Mercury Industries Bhd | Computer Forms vs. YX Precious Metals |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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