Correlation Between Diversified Gateway and Iskandar Waterfront
Can any of the company-specific risk be diversified away by investing in both Diversified Gateway and Iskandar Waterfront 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 Iskandar Waterfront 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 Iskandar Waterfront City, you can compare the effects of market volatilities on Diversified Gateway and Iskandar Waterfront 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 Iskandar Waterfront. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diversified Gateway and Iskandar Waterfront.
Diversification Opportunities for Diversified Gateway and Iskandar Waterfront
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Diversified and Iskandar is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Diversified Gateway Solutions and Iskandar Waterfront City in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iskandar Waterfront City 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 Iskandar Waterfront. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iskandar Waterfront City has no effect on the direction of Diversified Gateway i.e., Diversified Gateway and Iskandar Waterfront go up and down completely randomly.
Pair Corralation between Diversified Gateway and Iskandar Waterfront
Assuming the 90 days trading horizon Diversified Gateway is expected to generate 1.3 times less return on investment than Iskandar Waterfront. In addition to that, Diversified Gateway is 1.24 times more volatile than Iskandar Waterfront City. It trades about 0.04 of its total potential returns per unit of risk. Iskandar Waterfront City is currently generating about 0.06 per unit of volatility. If you would invest 27.00 in Iskandar Waterfront City on September 12, 2024 and sell it today you would earn a total of 29.00 from holding Iskandar Waterfront City or generate 107.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Diversified Gateway Solutions vs. Iskandar Waterfront City
Performance |
| Timeline |
| Diversified Gateway |
| Iskandar Waterfront City |
Diversified Gateway and Iskandar Waterfront Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diversified Gateway and Iskandar Waterfront
The main advantage of trading using opposite Diversified Gateway and Iskandar Waterfront positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diversified Gateway position performs unexpectedly, Iskandar Waterfront 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 Iskandar Waterfront will offset losses from the drop in Iskandar Waterfront's long position.| Diversified Gateway vs. Datasonic Group Bhd | Diversified Gateway vs. Awanbiru Technology Bhd | Diversified Gateway vs. Dataprep Holdings Bhd | Diversified Gateway vs. Systech Bhd |
| Iskandar Waterfront vs. Tex Cycle Technology | Iskandar Waterfront vs. Southern Steel Bhd | Iskandar Waterfront vs. Senheng New Retail | Iskandar Waterfront vs. Diversified Gateway Solutions |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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