Correlation Between Binasat Communications and EA Technique
Can any of the company-specific risk be diversified away by investing in both Binasat Communications and EA Technique 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 EA Technique 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 EA Technique M, you can compare the effects of market volatilities on Binasat Communications and EA Technique 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 EA Technique. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binasat Communications and EA Technique.
Diversification Opportunities for Binasat Communications and EA Technique
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Binasat and 5259 is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Binasat Communications Bhd and EA Technique M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Technique M 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 EA Technique. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Technique M has no effect on the direction of Binasat Communications i.e., Binasat Communications and EA Technique go up and down completely randomly.
Pair Corralation between Binasat Communications and EA Technique
If you would invest 21.00 in Binasat Communications Bhd on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Binasat Communications Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Binasat Communications Bhd vs. EA Technique M
Performance |
| Timeline |
| Binasat Communications |
| EA Technique M |
Binasat Communications and EA Technique Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binasat Communications and EA Technique
The main advantage of trading using opposite Binasat Communications and EA Technique positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binasat Communications position performs unexpectedly, EA Technique 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 EA Technique will offset losses from the drop in EA Technique's long position.| Binasat Communications vs. Digistar Bhd | Binasat Communications vs. Minetech Resources Bhd | Binasat Communications vs. OpenSys M Bhd | Binasat Communications vs. Insas Bhd |
| EA Technique vs. HeiTech Padu Bhd | EA Technique vs. Lysaght Galvanized Steel | EA Technique vs. Digistar Bhd | EA Technique vs. Swift Haulage 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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