Correlation Between ViTrox Bhd and Protasco Bhd
Can any of the company-specific risk be diversified away by investing in both ViTrox Bhd and Protasco Bhd 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 ViTrox Bhd and Protasco Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ViTrox Bhd and Protasco Bhd, you can compare the effects of market volatilities on ViTrox Bhd and Protasco Bhd 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 ViTrox Bhd with a short position of Protasco Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of ViTrox Bhd and Protasco Bhd.
Diversification Opportunities for ViTrox Bhd and Protasco Bhd
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ViTrox and Protasco is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding ViTrox Bhd and Protasco Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protasco Bhd and ViTrox Bhd 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 ViTrox Bhd are associated (or correlated) with Protasco Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protasco Bhd has no effect on the direction of ViTrox Bhd i.e., ViTrox Bhd and Protasco Bhd go up and down completely randomly.
Pair Corralation between ViTrox Bhd and Protasco Bhd
Assuming the 90 days trading horizon ViTrox Bhd is expected to generate 2.45 times less return on investment than Protasco Bhd. But when comparing it to its historical volatility, ViTrox Bhd is 1.61 times less risky than Protasco Bhd. It trades about 0.04 of its potential returns per unit of risk. Protasco Bhd is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 29.00 in Protasco Bhd on November 2, 2024 and sell it today you would earn a total of 6.00 from holding Protasco Bhd or generate 20.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ViTrox Bhd vs. Protasco Bhd
Performance |
| Timeline |
| ViTrox Bhd |
| Protasco Bhd |
ViTrox Bhd and Protasco Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ViTrox Bhd and Protasco Bhd
The main advantage of trading using opposite ViTrox Bhd and Protasco Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ViTrox Bhd position performs unexpectedly, Protasco Bhd 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 Protasco Bhd will offset losses from the drop in Protasco Bhd's long position.| ViTrox Bhd vs. Lotte Chemical Titan | ViTrox Bhd vs. Oriental Food Industries | ViTrox Bhd vs. Icon Offshore Bhd | ViTrox Bhd vs. CSC Steel Holdings |
| Protasco Bhd vs. Sunway Construction Group | Protasco Bhd vs. JAKS Resources Bhd | Protasco Bhd vs. PESTECH International Bhd | Protasco Bhd vs. Tadmax Resources Berhad |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |