Correlation Between Sanichi Technology and Malayan Banking
Can any of the company-specific risk be diversified away by investing in both Sanichi Technology and Malayan Banking 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 Sanichi Technology and Malayan Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanichi Technology Bhd and Malayan Banking Bhd, you can compare the effects of market volatilities on Sanichi Technology and Malayan Banking 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 Sanichi Technology with a short position of Malayan Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanichi Technology and Malayan Banking.
Diversification Opportunities for Sanichi Technology and Malayan Banking
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sanichi and Malayan is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sanichi Technology Bhd and Malayan Banking Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malayan Banking Bhd and Sanichi Technology 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 Sanichi Technology Bhd are associated (or correlated) with Malayan Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malayan Banking Bhd has no effect on the direction of Sanichi Technology i.e., Sanichi Technology and Malayan Banking go up and down completely randomly.
Pair Corralation between Sanichi Technology and Malayan Banking
Assuming the 90 days trading horizon Sanichi Technology Bhd is expected to under-perform the Malayan Banking. In addition to that, Sanichi Technology is 7.33 times more volatile than Malayan Banking Bhd. It trades about -0.06 of its total potential returns per unit of risk. Malayan Banking Bhd is currently generating about -0.03 per unit of volatility. If you would invest 1,012 in Malayan Banking Bhd on October 16, 2024 and sell it today you would lose (4.00) from holding Malayan Banking Bhd or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanichi Technology Bhd vs. Malayan Banking Bhd
Performance |
| Timeline |
| Sanichi Technology Bhd |
| Malayan Banking Bhd |
Sanichi Technology and Malayan Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanichi Technology and Malayan Banking
The main advantage of trading using opposite Sanichi Technology and Malayan Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanichi Technology position performs unexpectedly, Malayan Banking 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 Malayan Banking will offset losses from the drop in Malayan Banking's long position.| Sanichi Technology vs. Malayan Banking Bhd | Sanichi Technology vs. Binasat Communications Bhd | Sanichi Technology vs. Lotte Chemical Titan | Sanichi Technology vs. Hong Leong Bank |
| Malayan Banking vs. YX Precious Metals | Malayan Banking vs. Lyc Healthcare Bhd | Malayan Banking vs. Dufu Tech Corp | Malayan Banking vs. IHH Healthcare Bhd |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |