Correlation Between Greatech Technology and CSC Steel
Can any of the company-specific risk be diversified away by investing in both Greatech Technology and CSC Steel 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 Greatech Technology and CSC Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greatech Technology Bhd and CSC Steel Holdings, you can compare the effects of market volatilities on Greatech Technology and CSC Steel 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 Greatech Technology with a short position of CSC Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greatech Technology and CSC Steel.
Diversification Opportunities for Greatech Technology and CSC Steel
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Greatech and CSC is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Greatech Technology Bhd and CSC Steel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSC Steel Holdings and Greatech Technology 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 Greatech Technology Bhd are associated (or correlated) with CSC Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSC Steel Holdings has no effect on the direction of Greatech Technology i.e., Greatech Technology and CSC Steel go up and down completely randomly.
Pair Corralation between Greatech Technology and CSC Steel
Assuming the 90 days trading horizon Greatech Technology Bhd is expected to under-perform the CSC Steel. In addition to that, Greatech Technology is 1.63 times more volatile than CSC Steel Holdings. It trades about -0.01 of its total potential returns per unit of risk. CSC Steel Holdings is currently generating about 0.02 per unit of volatility. If you would invest 112.00 in CSC Steel Holdings on September 3, 2024 and sell it today you would earn a total of 6.00 from holding CSC Steel Holdings or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greatech Technology Bhd vs. CSC Steel Holdings
Performance |
| Timeline |
| Greatech Technology Bhd |
| CSC Steel Holdings |
Greatech Technology and CSC Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greatech Technology and CSC Steel
The main advantage of trading using opposite Greatech Technology and CSC Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greatech Technology position performs unexpectedly, CSC Steel 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 CSC Steel will offset losses from the drop in CSC Steel's long position.| Greatech Technology vs. Genetec Technology Bhd | Greatech Technology vs. PIE Industrial Bhd | Greatech Technology vs. Supercomnet Technologies Bhd | Greatech Technology vs. Kobay Tech Bhd |
| CSC Steel vs. Press Metal Bhd | CSC Steel vs. Malaysia Steel Works | CSC Steel vs. Choo Bee Metal | CSC Steel vs. Eonmetall Group 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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