Correlation Between MClean Technologies and Supercomnet Technologies
Can any of the company-specific risk be diversified away by investing in both MClean Technologies and Supercomnet Technologies 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 MClean Technologies and Supercomnet Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MClean Technologies Bhd and Supercomnet Technologies Bhd, you can compare the effects of market volatilities on MClean Technologies and Supercomnet Technologies 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 MClean Technologies with a short position of Supercomnet Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of MClean Technologies and Supercomnet Technologies.
Diversification Opportunities for MClean Technologies and Supercomnet Technologies
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MClean and Supercomnet is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding MClean Technologies Bhd and Supercomnet Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercomnet Technologies and MClean Technologies 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 MClean Technologies Bhd are associated (or correlated) with Supercomnet Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercomnet Technologies has no effect on the direction of MClean Technologies i.e., MClean Technologies and Supercomnet Technologies go up and down completely randomly.
Pair Corralation between MClean Technologies and Supercomnet Technologies
Assuming the 90 days trading horizon MClean Technologies Bhd is expected to generate 2.79 times more return on investment than Supercomnet Technologies. However, MClean Technologies is 2.79 times more volatile than Supercomnet Technologies Bhd. It trades about 0.02 of its potential returns per unit of risk. Supercomnet Technologies Bhd is currently generating about 0.01 per unit of risk. If you would invest 26.00 in MClean Technologies Bhd on September 2, 2024 and sell it today you would earn a total of 0.00 from holding MClean Technologies Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MClean Technologies Bhd vs. Supercomnet Technologies Bhd
Performance |
| Timeline |
| MClean Technologies Bhd |
| Supercomnet Technologies |
MClean Technologies and Supercomnet Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MClean Technologies and Supercomnet Technologies
The main advantage of trading using opposite MClean Technologies and Supercomnet Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MClean Technologies position performs unexpectedly, Supercomnet Technologies 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 Supercomnet Technologies will offset losses from the drop in Supercomnet Technologies' long position.| MClean Technologies vs. Digistar Bhd | MClean Technologies vs. Minetech Resources Bhd | MClean Technologies vs. Swift Haulage Bhd | MClean Technologies vs. Bina Darulaman 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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