Correlation Between Tex Cycle and Kobay Tech
Can any of the company-specific risk be diversified away by investing in both Tex Cycle and Kobay Tech 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 Kobay Tech 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 Kobay Tech Bhd, you can compare the effects of market volatilities on Tex Cycle and Kobay Tech 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 Kobay Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tex Cycle and Kobay Tech.
Diversification Opportunities for Tex Cycle and Kobay Tech
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tex and Kobay is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tex Cycle Technology and Kobay Tech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kobay Tech 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 Kobay Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kobay Tech Bhd has no effect on the direction of Tex Cycle i.e., Tex Cycle and Kobay Tech go up and down completely randomly.
Pair Corralation between Tex Cycle and Kobay Tech
Assuming the 90 days trading horizon Tex Cycle Technology is expected to under-perform the Kobay Tech. But the stock apears to be less risky and, when comparing its historical volatility, Tex Cycle Technology is 5.64 times less risky than Kobay Tech. The stock trades about -0.19 of its potential returns per unit of risk. The Kobay Tech Bhd is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 126.00 in Kobay Tech Bhd on September 5, 2024 and sell it today you would earn a total of 22.00 from holding Kobay Tech Bhd or generate 17.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tex Cycle Technology vs. Kobay Tech Bhd
Performance |
| Timeline |
| Tex Cycle Technology |
| Kobay Tech Bhd |
Tex Cycle and Kobay Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tex Cycle and Kobay Tech
The main advantage of trading using opposite Tex Cycle and Kobay Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tex Cycle position performs unexpectedly, Kobay Tech 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 Kobay Tech will offset losses from the drop in Kobay Tech's long position.| Tex Cycle vs. Minetech Resources Bhd | Tex Cycle vs. Swift Haulage Bhd | Tex Cycle vs. Insas Bhd | Tex Cycle vs. Bina Darulaman Bhd |
| Kobay Tech vs. Sports Toto Berhad | Kobay Tech vs. Choo Bee Metal | Kobay Tech vs. Press Metal Bhd | Kobay Tech vs. Tex Cycle Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |