Correlation Between MClean Technologies and Binasat Communications
Can any of the company-specific risk be diversified away by investing in both MClean Technologies 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 MClean Technologies and Binasat Communications 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 Binasat Communications Bhd, you can compare the effects of market volatilities on MClean Technologies 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 MClean Technologies with a short position of Binasat Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of MClean Technologies and Binasat Communications.
Diversification Opportunities for MClean Technologies and Binasat Communications
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MClean and Binasat is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding MClean Technologies Bhd and Binasat Communications Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binasat Communications 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 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 MClean Technologies i.e., MClean Technologies and Binasat Communications go up and down completely randomly.
Pair Corralation between MClean Technologies and Binasat Communications
Assuming the 90 days trading horizon MClean Technologies Bhd is expected to generate 1.03 times more return on investment than Binasat Communications. However, MClean Technologies is 1.03 times more volatile than Binasat Communications Bhd. It trades about 0.07 of its potential returns per unit of risk. Binasat Communications Bhd is currently generating about -0.09 per unit of risk. If you would invest 29.00 in MClean Technologies Bhd on November 28, 2024 and sell it today you would earn a total of 1.00 from holding MClean Technologies Bhd or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MClean Technologies Bhd vs. Binasat Communications Bhd
Performance |
| Timeline |
| MClean Technologies Bhd |
| Binasat Communications |
MClean Technologies and Binasat Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MClean Technologies and Binasat Communications
The main advantage of trading using opposite MClean Technologies and Binasat Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MClean Technologies 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.| MClean Technologies vs. Sunway Construction Group | MClean Technologies vs. DC HEALTHCARE HOLDINGS | MClean Technologies vs. Sports Toto Berhad | MClean Technologies vs. TAS Offshore Bhd |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |