Correlation Between Tex Cycle and Sapura Industrial
Can any of the company-specific risk be diversified away by investing in both Tex Cycle and Sapura 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 Sapura 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 Sapura Industrial Bhd, you can compare the effects of market volatilities on Tex Cycle and Sapura 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 Sapura Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tex Cycle and Sapura Industrial.
Diversification Opportunities for Tex Cycle and Sapura Industrial
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tex and Sapura is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Tex Cycle Technology and Sapura Industrial Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sapura 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 Sapura Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sapura Industrial Bhd has no effect on the direction of Tex Cycle i.e., Tex Cycle and Sapura Industrial go up and down completely randomly.
Pair Corralation between Tex Cycle and Sapura Industrial
Assuming the 90 days trading horizon Tex Cycle Technology is expected to generate 0.73 times more return on investment than Sapura Industrial. However, Tex Cycle Technology is 1.37 times less risky than Sapura Industrial. It trades about 0.08 of its potential returns per unit of risk. Sapura Industrial Bhd is currently generating about 0.03 per unit of risk. If you would invest 41.00 in Tex Cycle Technology on September 4, 2024 and sell it today you would earn a total of 63.00 from holding Tex Cycle Technology or generate 153.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Tex Cycle Technology vs. Sapura Industrial Bhd
Performance |
| Timeline |
| Tex Cycle Technology |
| Sapura Industrial Bhd |
Tex Cycle and Sapura Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tex Cycle and Sapura Industrial
The main advantage of trading using opposite Tex Cycle and Sapura Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tex Cycle position performs unexpectedly, Sapura 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 Sapura Industrial will offset losses from the drop in Sapura Industrial'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 |
| Sapura Industrial vs. Binasat Communications Bhd | Sapura Industrial vs. Sports Toto Berhad | Sapura Industrial vs. Diversified Gateway Solutions | Sapura Industrial vs. CB Industrial Product |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |