Correlation Between Tex Cycle and Greatech Technology
Can any of the company-specific risk be diversified away by investing in both Tex Cycle and Greatech Technology 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 Tex Cycle and Greatech Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tex Cycle Technology and Greatech Technology Bhd, you can compare the effects of market volatilities on Tex Cycle and Greatech Technology 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 Tex Cycle with a short position of Greatech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tex Cycle and Greatech Technology.
Diversification Opportunities for Tex Cycle and Greatech Technology
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tex and Greatech is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Tex Cycle Technology and Greatech Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greatech Technology Bhd and Tex Cycle 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 Tex Cycle Technology are associated (or correlated) with Greatech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greatech Technology Bhd has no effect on the direction of Tex Cycle i.e., Tex Cycle and Greatech Technology go up and down completely randomly.
Pair Corralation between Tex Cycle and Greatech Technology
Assuming the 90 days trading horizon Tex Cycle Technology is expected to generate 1.07 times more return on investment than Greatech Technology. However, Tex Cycle is 1.07 times more volatile than Greatech Technology Bhd. It trades about 0.08 of its potential returns per unit of risk. Greatech Technology Bhd is currently generating about -0.01 per unit of risk. If you would invest 70.00 in Tex Cycle Technology on September 2, 2024 and sell it today you would earn a total of 34.00 from holding Tex Cycle Technology or generate 48.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tex Cycle Technology vs. Greatech Technology Bhd
Performance |
| Timeline |
| Tex Cycle Technology |
| Greatech Technology Bhd |
Tex Cycle and Greatech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tex Cycle and Greatech Technology
The main advantage of trading using opposite Tex Cycle and Greatech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tex Cycle position performs unexpectedly, Greatech Technology 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 Greatech Technology will offset losses from the drop in Greatech Technology's long position.| Tex Cycle vs. Digistar Bhd | Tex Cycle vs. Minetech Resources Bhd | Tex Cycle vs. Swift Haulage Bhd | Tex Cycle vs. Bina Darulaman Bhd |
| Greatech Technology vs. PIE Industrial Bhd | Greatech Technology vs. Magni Tech Industries | Greatech Technology vs. Sunzen Biotech Bhd | Greatech Technology vs. Choo Bee Metal |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |