Correlation Between Diversified Gateway and Greatech Technology
Can any of the company-specific risk be diversified away by investing in both Diversified Gateway and Greatech Technology 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 Diversified Gateway and Greatech Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diversified Gateway Solutions and Greatech Technology Bhd, you can compare the effects of market volatilities on Diversified Gateway and Greatech Technology 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 Diversified Gateway with a short position of Greatech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diversified Gateway and Greatech Technology.
Diversification Opportunities for Diversified Gateway and Greatech Technology
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Diversified and Greatech is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Diversified Gateway Solutions and Greatech Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greatech Technology Bhd and Diversified Gateway 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 Diversified Gateway Solutions are associated (or correlated) with Greatech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greatech Technology Bhd has no effect on the direction of Diversified Gateway i.e., Diversified Gateway and Greatech Technology go up and down completely randomly.
Pair Corralation between Diversified Gateway and Greatech Technology
Assuming the 90 days trading horizon Diversified Gateway Solutions is expected to under-perform the Greatech Technology. In addition to that, Diversified Gateway is 1.12 times more volatile than Greatech Technology Bhd. It trades about -0.07 of its total potential returns per unit of risk. Greatech Technology Bhd is currently generating about -0.04 per unit of volatility. If you would invest 231.00 in Greatech Technology Bhd on August 28, 2024 and sell it today you would lose (19.00) from holding Greatech Technology Bhd or give up 8.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diversified Gateway Solutions vs. Greatech Technology Bhd
Performance |
| Timeline |
| Diversified Gateway |
| Greatech Technology Bhd |
Diversified Gateway and Greatech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diversified Gateway and Greatech Technology
The main advantage of trading using opposite Diversified Gateway and Greatech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diversified Gateway position performs unexpectedly, Greatech Technology 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 Greatech Technology will offset losses from the drop in Greatech Technology's long position.| Diversified Gateway vs. CPE Technology Berhad | Diversified Gateway vs. Sports Toto Berhad | Diversified Gateway vs. Press Metal Bhd | Diversified Gateway vs. Riverview Rubber Estates |
| Greatech Technology vs. K One Technology Bhd | Greatech Technology vs. Petronas Chemicals Group | Greatech Technology vs. Coraza Integrated Technology | Greatech Technology vs. ES Ceramics 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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