Correlation Between Tex Cycle and Iskandar Waterfront
Can any of the company-specific risk be diversified away by investing in both Tex Cycle and Iskandar Waterfront 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 Iskandar Waterfront 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 Iskandar Waterfront City, you can compare the effects of market volatilities on Tex Cycle and Iskandar Waterfront 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 Iskandar Waterfront. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tex Cycle and Iskandar Waterfront.
Diversification Opportunities for Tex Cycle and Iskandar Waterfront
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tex and Iskandar is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Tex Cycle Technology and Iskandar Waterfront City in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iskandar Waterfront City 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 Iskandar Waterfront. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iskandar Waterfront City has no effect on the direction of Tex Cycle i.e., Tex Cycle and Iskandar Waterfront go up and down completely randomly.
Pair Corralation between Tex Cycle and Iskandar Waterfront
Assuming the 90 days trading horizon Tex Cycle Technology is expected to generate 0.85 times more return on investment than Iskandar Waterfront. However, Tex Cycle Technology is 1.17 times less risky than Iskandar Waterfront. It trades about 0.08 of its potential returns per unit of risk. Iskandar Waterfront City is currently generating about 0.06 per unit of risk. If you would invest 42.00 in Tex Cycle Technology on September 12, 2024 and sell it today you would earn a total of 73.00 from holding Tex Cycle Technology or generate 173.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Tex Cycle Technology vs. Iskandar Waterfront City
Performance |
| Timeline |
| Tex Cycle Technology |
| Iskandar Waterfront City |
Tex Cycle and Iskandar Waterfront Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tex Cycle and Iskandar Waterfront
The main advantage of trading using opposite Tex Cycle and Iskandar Waterfront positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tex Cycle position performs unexpectedly, Iskandar Waterfront 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 Iskandar Waterfront will offset losses from the drop in Iskandar Waterfront's long position.| Tex Cycle vs. Computer Forms Bhd | Tex Cycle vs. MClean Technologies Bhd | Tex Cycle vs. Al Aqar Healthcare | Tex Cycle vs. PMB Technology Bhd |
| Iskandar Waterfront vs. Tex Cycle Technology | Iskandar Waterfront vs. Southern Steel Bhd | Iskandar Waterfront vs. Senheng New Retail | Iskandar Waterfront vs. Diversified Gateway Solutions |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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