Correlation Between Binasat Communications and Mr D
Can any of the company-specific risk be diversified away by investing in both Binasat Communications and Mr D 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 Mr D 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 Mr D I, you can compare the effects of market volatilities on Binasat Communications and Mr D 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 Mr D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binasat Communications and Mr D.
Diversification Opportunities for Binasat Communications and Mr D
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Binasat and 5296 is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Binasat Communications Bhd and Mr D I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mr D I 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 Mr D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mr D I has no effect on the direction of Binasat Communications i.e., Binasat Communications and Mr D go up and down completely randomly.
Pair Corralation between Binasat Communications and Mr D
Assuming the 90 days trading horizon Binasat Communications Bhd is expected to under-perform the Mr D. In addition to that, Binasat Communications is 1.54 times more volatile than Mr D I. It trades about -0.16 of its total potential returns per unit of risk. Mr D I is currently generating about 0.01 per unit of volatility. If you would invest 181.00 in Mr D I on September 16, 2024 and sell it today you would earn a total of 0.00 from holding Mr D I or generate 0.0% 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. Mr D I
Performance |
| Timeline |
| Binasat Communications |
| Mr D I |
Binasat Communications and Mr D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binasat Communications and Mr D
The main advantage of trading using opposite Binasat Communications and Mr D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binasat Communications position performs unexpectedly, Mr D 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 Mr D will offset losses from the drop in Mr D's long position.| Binasat Communications vs. Axiata Group Bhd | Binasat Communications vs. Telekom Malaysia Bhd | Binasat Communications vs. TIME Dotcom Bhd |
| Mr D vs. Sports Toto Berhad | Mr D vs. Petronas Chemicals Group | Mr D vs. Binasat Communications Bhd | Mr D vs. Al Aqar Healthcare |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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