Correlation Between ES Ceramics and Binasat Communications
Can any of the company-specific risk be diversified away by investing in both ES Ceramics and Binasat Communications 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 Binasat Communications 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 Binasat Communications Bhd, you can compare the effects of market volatilities on ES Ceramics and Binasat Communications 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 Binasat Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of ES Ceramics and Binasat Communications.
Diversification Opportunities for ES Ceramics and Binasat Communications
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 0100 and Binasat is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding ES Ceramics Technology and Binasat Communications Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binasat Communications 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 Binasat Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binasat Communications has no effect on the direction of ES Ceramics i.e., ES Ceramics and Binasat Communications go up and down completely randomly.
Pair Corralation between ES Ceramics and Binasat Communications
Assuming the 90 days trading horizon ES Ceramics Technology is expected to under-perform the Binasat Communications. In addition to that, ES Ceramics is 1.72 times more volatile than Binasat Communications Bhd. It trades about -0.14 of its total potential returns per unit of risk. Binasat Communications Bhd is currently generating about -0.09 per unit of volatility. If you would invest 18.00 in Binasat Communications Bhd on November 28, 2024 and sell it today you would lose (1.00) from holding Binasat Communications Bhd or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ES Ceramics Technology vs. Binasat Communications Bhd
Performance |
| Timeline |
| ES Ceramics Technology |
| Binasat Communications |
ES Ceramics and Binasat Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ES Ceramics and Binasat Communications
The main advantage of trading using opposite ES Ceramics and Binasat Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ES Ceramics position performs unexpectedly, Binasat Communications 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 Binasat Communications will offset losses from the drop in Binasat Communications' long position.| ES Ceramics vs. Press Metal Bhd | ES Ceramics vs. Carlsberg Brewery Malaysia | ES Ceramics vs. Kossan Rubber Industries | ES Ceramics vs. Ho Hup Construction |
| Binasat Communications vs. Malayan Banking Bhd | Binasat Communications vs. Oriental Food Industries | Binasat Communications vs. ECM Libra Financial | Binasat Communications vs. Apollo Food Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |