Correlation Between Tex Cycle and PIE Industrial
Can any of the company-specific risk be diversified away by investing in both Tex Cycle and PIE Industrial 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 PIE Industrial 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 PIE Industrial Bhd, you can compare the effects of market volatilities on Tex Cycle and PIE Industrial 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 PIE Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tex Cycle and PIE Industrial.
Diversification Opportunities for Tex Cycle and PIE Industrial
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tex and PIE is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Tex Cycle Technology and PIE Industrial Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIE Industrial 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 PIE Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIE Industrial Bhd has no effect on the direction of Tex Cycle i.e., Tex Cycle and PIE Industrial go up and down completely randomly.
Pair Corralation between Tex Cycle and PIE Industrial
Assuming the 90 days trading horizon Tex Cycle Technology is expected to under-perform the PIE Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Tex Cycle Technology is 3.91 times less risky than PIE Industrial. The stock trades about -0.28 of its potential returns per unit of risk. The PIE Industrial Bhd is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 519.00 in PIE Industrial Bhd on August 30, 2024 and sell it today you would earn a total of 56.00 from holding PIE Industrial Bhd or generate 10.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tex Cycle Technology vs. PIE Industrial Bhd
Performance |
| Timeline |
| Tex Cycle Technology |
| PIE Industrial Bhd |
Tex Cycle and PIE Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tex Cycle and PIE Industrial
The main advantage of trading using opposite Tex Cycle and PIE Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tex Cycle position performs unexpectedly, PIE Industrial 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 PIE Industrial will offset losses from the drop in PIE Industrial's long position.| Tex Cycle vs. Computer Forms Bhd | Tex Cycle vs. Minetech Resources Bhd | Tex Cycle vs. Sunzen Biotech Bhd | Tex Cycle vs. Hengyuan Refining |
| PIE Industrial vs. Choo Bee Metal | PIE Industrial vs. Shangri La Hotels | PIE Industrial vs. British American Tobacco | PIE Industrial vs. Sungei Bagan Rubber |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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