Correlation Between Binasat Communications and Deleum Bhd
Can any of the company-specific risk be diversified away by investing in both Binasat Communications and Deleum Bhd 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 Binasat Communications and Deleum Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binasat Communications Bhd and Deleum Bhd, you can compare the effects of market volatilities on Binasat Communications and Deleum Bhd 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 Binasat Communications with a short position of Deleum Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binasat Communications and Deleum Bhd.
Diversification Opportunities for Binasat Communications and Deleum Bhd
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Binasat and Deleum is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Binasat Communications Bhd and Deleum Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deleum Bhd and Binasat Communications 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 Binasat Communications Bhd are associated (or correlated) with Deleum Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deleum Bhd has no effect on the direction of Binasat Communications i.e., Binasat Communications and Deleum Bhd go up and down completely randomly.
Pair Corralation between Binasat Communications and Deleum Bhd
Assuming the 90 days trading horizon Binasat Communications Bhd is expected to under-perform the Deleum Bhd. In addition to that, Binasat Communications is 1.06 times more volatile than Deleum Bhd. It trades about -0.03 of its total potential returns per unit of risk. Deleum Bhd is currently generating about 0.05 per unit of volatility. If you would invest 124.00 in Deleum Bhd on September 3, 2024 and sell it today you would earn a total of 18.00 from holding Deleum Bhd or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binasat Communications Bhd vs. Deleum Bhd
Performance |
| Timeline |
| Binasat Communications |
| Deleum Bhd |
Binasat Communications and Deleum Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binasat Communications and Deleum Bhd
The main advantage of trading using opposite Binasat Communications and Deleum Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binasat Communications position performs unexpectedly, Deleum Bhd 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 Deleum Bhd will offset losses from the drop in Deleum Bhd's long position.| Binasat Communications vs. Telekom Malaysia Bhd | Binasat Communications vs. Minetech Resources Bhd | Binasat Communications vs. Swift Haulage Bhd | Binasat Communications vs. Insas Bhd |
| Deleum Bhd vs. MClean Technologies Bhd | Deleum Bhd vs. Cengild Medical Berhad | Deleum Bhd vs. Duopharma Biotech Bhd | Deleum Bhd 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |