Correlation Between Daya Materials and CB Industrial
Can any of the company-specific risk be diversified away by investing in both Daya Materials and CB 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 Daya Materials and CB Industrial 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 CB Industrial Product, you can compare the effects of market volatilities on Daya Materials and CB 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 Daya Materials with a short position of CB Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daya Materials and CB Industrial.
Diversification Opportunities for Daya Materials and CB Industrial
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daya and 7076 is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Daya Materials Bhd and CB Industrial Product in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CB Industrial Product 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 CB Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CB Industrial Product has no effect on the direction of Daya Materials i.e., Daya Materials and CB Industrial go up and down completely randomly.
Pair Corralation between Daya Materials and CB Industrial
Assuming the 90 days trading horizon Daya Materials Bhd is expected to under-perform the CB Industrial. In addition to that, Daya Materials is 3.49 times more volatile than CB Industrial Product. It trades about -0.08 of its total potential returns per unit of risk. CB Industrial Product is currently generating about 0.09 per unit of volatility. If you would invest 130.00 in CB Industrial Product on August 30, 2024 and sell it today you would earn a total of 3.00 from holding CB Industrial Product or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Daya Materials Bhd vs. CB Industrial Product
Performance |
| Timeline |
| Daya Materials Bhd |
| CB Industrial Product |
Daya Materials and CB Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daya Materials and CB Industrial
The main advantage of trading using opposite Daya Materials and CB Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daya Materials position performs unexpectedly, CB 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 CB Industrial will offset losses from the drop in CB Industrial's long position.| Daya Materials vs. Apex Healthcare Bhd | Daya Materials vs. IHH Healthcare Bhd | Daya Materials vs. Sapura Industrial Bhd | Daya Materials vs. DC HEALTHCARE HOLDINGS |
| CB Industrial vs. Radiant Globaltech Bhd | CB Industrial vs. Pantech Group Holdings | CB Industrial vs. Sunzen Biotech Bhd | CB Industrial vs. Datasonic Group 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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