Correlation Between Radiant Globaltech and Mr D
Can any of the company-specific risk be diversified away by investing in both Radiant Globaltech 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 Radiant Globaltech and Mr D into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Radiant Globaltech Bhd and Mr D I, you can compare the effects of market volatilities on Radiant Globaltech 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 Radiant Globaltech with a short position of Mr D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radiant Globaltech and Mr D.
Diversification Opportunities for Radiant Globaltech and Mr D
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Radiant and 5296 is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Radiant Globaltech 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 Radiant Globaltech 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 Radiant Globaltech 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 Radiant Globaltech i.e., Radiant Globaltech and Mr D go up and down completely randomly.
Pair Corralation between Radiant Globaltech and Mr D
Assuming the 90 days trading horizon Radiant Globaltech Bhd is expected to generate 1.22 times more return on investment than Mr D. However, Radiant Globaltech is 1.22 times more volatile than Mr D I. It trades about 0.01 of its potential returns per unit of risk. Mr D I is currently generating about 0.0 per unit of risk. If you would invest 35.00 in Radiant Globaltech Bhd on September 3, 2024 and sell it today you would lose (2.00) from holding Radiant Globaltech Bhd or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Radiant Globaltech Bhd vs. Mr D I
Performance |
| Timeline |
| Radiant Globaltech Bhd |
| Mr D I |
Radiant Globaltech and Mr D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Radiant Globaltech and Mr D
The main advantage of trading using opposite Radiant Globaltech and Mr D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radiant Globaltech 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.| Radiant Globaltech vs. Mr D I | Radiant Globaltech vs. Senheng New Retail | Radiant Globaltech vs. Minetech Resources Bhd | Radiant Globaltech vs. Swift Haulage Bhd |
| Mr D vs. Silver Ridge Holdings | Mr D vs. Computer Forms Bhd | Mr D vs. Daya Materials Bhd | Mr D vs. British American Tobacco |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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