Correlation Between MQ Technology and Binasat Communications
Can any of the company-specific risk be diversified away by investing in both MQ Technology and Binasat Communications 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 MQ Technology and Binasat Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MQ Technology Bhd and Binasat Communications Bhd, you can compare the effects of market volatilities on MQ Technology and Binasat Communications 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 MQ Technology with a short position of Binasat Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of MQ Technology and Binasat Communications.
Diversification Opportunities for MQ Technology and Binasat Communications
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 0070 and Binasat is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding MQ Technology Bhd and Binasat Communications Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binasat Communications and MQ 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 MQ Technology Bhd are associated (or correlated) with Binasat Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binasat Communications has no effect on the direction of MQ Technology i.e., MQ Technology and Binasat Communications go up and down completely randomly.
Pair Corralation between MQ Technology and Binasat Communications
Assuming the 90 days trading horizon MQ Technology Bhd is expected to generate 10.09 times more return on investment than Binasat Communications. However, MQ Technology is 10.09 times more volatile than Binasat Communications Bhd. It trades about 0.06 of its potential returns per unit of risk. Binasat Communications Bhd is currently generating about -0.01 per unit of risk. If you would invest 50.00 in MQ Technology Bhd on October 11, 2024 and sell it today you would lose (39.00) from holding MQ Technology Bhd or give up 78.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MQ Technology Bhd vs. Binasat Communications Bhd
Performance |
| Timeline |
| MQ Technology Bhd |
| Binasat Communications |
MQ Technology and Binasat Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MQ Technology and Binasat Communications
The main advantage of trading using opposite MQ Technology and Binasat Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MQ Technology position performs unexpectedly, Binasat Communications 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 Binasat Communications will offset losses from the drop in Binasat Communications' long position.| MQ Technology vs. Binasat Communications Bhd | MQ Technology vs. Choo Bee Metal | MQ Technology vs. TAS Offshore Bhd | MQ Technology vs. Dataprep Holdings Bhd |
| Binasat Communications vs. Datasonic Group Bhd | Binasat Communications vs. TAS Offshore Bhd | Binasat Communications vs. Petronas Chemicals Group | Binasat Communications vs. Senheng New Retail |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |