Correlation Between MTouche Technology and Dataprep Holdings
Can any of the company-specific risk be diversified away by investing in both MTouche Technology and Dataprep Holdings 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 MTouche Technology and Dataprep Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mTouche Technology Bhd and Dataprep Holdings Bhd, you can compare the effects of market volatilities on MTouche Technology and Dataprep Holdings 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 MTouche Technology with a short position of Dataprep Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTouche Technology and Dataprep Holdings.
Diversification Opportunities for MTouche Technology and Dataprep Holdings
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MTouche and Dataprep is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding mTouche Technology Bhd and Dataprep Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataprep Holdings Bhd and MTouche Technology 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 mTouche Technology Bhd are associated (or correlated) with Dataprep Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataprep Holdings Bhd has no effect on the direction of MTouche Technology i.e., MTouche Technology and Dataprep Holdings go up and down completely randomly.
Pair Corralation between MTouche Technology and Dataprep Holdings
Assuming the 90 days trading horizon mTouche Technology Bhd is expected to generate 1.44 times more return on investment than Dataprep Holdings. However, MTouche Technology is 1.44 times more volatile than Dataprep Holdings Bhd. It trades about 0.02 of its potential returns per unit of risk. Dataprep Holdings Bhd is currently generating about -0.01 per unit of risk. If you would invest 5.00 in mTouche Technology Bhd on August 24, 2024 and sell it today you would lose (1.50) from holding mTouche Technology Bhd or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
mTouche Technology Bhd vs. Dataprep Holdings Bhd
Performance |
| Timeline |
| mTouche Technology Bhd |
| Dataprep Holdings Bhd |
MTouche Technology and Dataprep Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTouche Technology and Dataprep Holdings
The main advantage of trading using opposite MTouche Technology and Dataprep Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTouche Technology position performs unexpectedly, Dataprep Holdings 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 Dataprep Holdings will offset losses from the drop in Dataprep Holdings' long position.| MTouche Technology vs. Riverview Rubber Estates | MTouche Technology vs. Petronas Chemicals Group | MTouche Technology vs. EA Technique M | MTouche Technology vs. Dnonce Tech Bhd |
| Dataprep Holdings vs. Dagang Nexchange Bhd | Dataprep Holdings vs. Datasonic Group Bhd | Dataprep Holdings vs. Awanbiru Technology Bhd | Dataprep Holdings vs. Systech 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 CEOs Directory module to screen CEOs from public companies around the world.
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