Correlation Between ES Ceramics and OpenSys M
Can any of the company-specific risk be diversified away by investing in both ES Ceramics and OpenSys M 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 ES Ceramics and OpenSys M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ES Ceramics Technology and OpenSys M Bhd, you can compare the effects of market volatilities on ES Ceramics and OpenSys M 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 ES Ceramics with a short position of OpenSys M. Check out your portfolio center. Please also check ongoing floating volatility patterns of ES Ceramics and OpenSys M.
Diversification Opportunities for ES Ceramics and OpenSys M
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between 0100 and OpenSys is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding ES Ceramics Technology and OpenSys M Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OpenSys M Bhd and ES Ceramics 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 ES Ceramics Technology are associated (or correlated) with OpenSys M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OpenSys M Bhd has no effect on the direction of ES Ceramics i.e., ES Ceramics and OpenSys M go up and down completely randomly.
Pair Corralation between ES Ceramics and OpenSys M
Assuming the 90 days trading horizon ES Ceramics Technology is expected to under-perform the OpenSys M. In addition to that, ES Ceramics is 2.45 times more volatile than OpenSys M Bhd. It trades about -0.06 of its total potential returns per unit of risk. OpenSys M Bhd is currently generating about 0.01 per unit of volatility. If you would invest 35.00 in OpenSys M Bhd on October 24, 2024 and sell it today you would earn a total of 0.00 from holding OpenSys M Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ES Ceramics Technology vs. OpenSys M Bhd
Performance |
| Timeline |
| ES Ceramics Technology |
| OpenSys M Bhd |
ES Ceramics and OpenSys M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ES Ceramics and OpenSys M
The main advantage of trading using opposite ES Ceramics and OpenSys M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ES Ceramics position performs unexpectedly, OpenSys M 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 OpenSys M will offset losses from the drop in OpenSys M's long position.| ES Ceramics vs. YX Precious Metals | ES Ceramics vs. Press Metal Bhd | ES Ceramics vs. Uchi Technologies Bhd | ES Ceramics vs. Tex Cycle Technology |
| OpenSys M vs. ES Ceramics Technology | OpenSys M vs. Minetech Resources Bhd | OpenSys M vs. Dufu Tech Corp | OpenSys M vs. Tex Cycle Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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