Correlation Between Daya Materials and Public Bank
Can any of the company-specific risk be diversified away by investing in both Daya Materials and Public Bank 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 Daya Materials and Public Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daya Materials Bhd and Public Bank Bhd, you can compare the effects of market volatilities on Daya Materials and Public Bank 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 Daya Materials with a short position of Public Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daya Materials and Public Bank.
Diversification Opportunities for Daya Materials and Public Bank
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Daya and Public is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Daya Materials Bhd and Public Bank Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Bank Bhd and Daya Materials 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 Daya Materials Bhd are associated (or correlated) with Public Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Bank Bhd has no effect on the direction of Daya Materials i.e., Daya Materials and Public Bank go up and down completely randomly.
Pair Corralation between Daya Materials and Public Bank
Assuming the 90 days trading horizon Daya Materials Bhd is expected to under-perform the Public Bank. In addition to that, Daya Materials is 4.08 times more volatile than Public Bank Bhd. It trades about 0.0 of its total potential returns per unit of risk. Public Bank Bhd is currently generating about 0.03 per unit of volatility. If you would invest 403.00 in Public Bank Bhd on September 2, 2024 and sell it today you would earn a total of 44.00 from holding Public Bank Bhd or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Daya Materials Bhd vs. Public Bank Bhd
Performance |
| Timeline |
| Daya Materials Bhd |
| Public Bank Bhd |
Daya Materials and Public Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daya Materials and Public Bank
The main advantage of trading using opposite Daya Materials and Public Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daya Materials position performs unexpectedly, Public Bank 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 Public Bank will offset losses from the drop in Public Bank's long position.| Daya Materials vs. Barakah Offshore Petroleum | Daya Materials vs. Digistar Bhd | Daya Materials vs. Minetech Resources Bhd | Daya Materials vs. Swift Haulage Bhd |
| Public Bank vs. YX Precious Metals | Public Bank vs. Nova Wellness Group | Public Bank vs. Tex Cycle Technology | Public Bank vs. Lyc Healthcare Bhd |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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