Correlation Between Greatech Technology and Tenaga Nasional
Can any of the company-specific risk be diversified away by investing in both Greatech Technology and Tenaga Nasional 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 Tenaga Nasional 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 Tenaga Nasional Bhd, you can compare the effects of market volatilities on Greatech Technology and Tenaga Nasional 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 Tenaga Nasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greatech Technology and Tenaga Nasional.
Diversification Opportunities for Greatech Technology and Tenaga Nasional
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greatech and Tenaga is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Greatech Technology Bhd and Tenaga Nasional Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenaga Nasional Bhd 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 Tenaga Nasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenaga Nasional Bhd has no effect on the direction of Greatech Technology i.e., Greatech Technology and Tenaga Nasional go up and down completely randomly.
Pair Corralation between Greatech Technology and Tenaga Nasional
Assuming the 90 days trading horizon Greatech Technology Bhd is expected to under-perform the Tenaga Nasional. In addition to that, Greatech Technology is 2.28 times more volatile than Tenaga Nasional Bhd. It trades about -0.01 of its total potential returns per unit of risk. Tenaga Nasional Bhd is currently generating about 0.02 per unit of volatility. If you would invest 1,400 in Tenaga Nasional Bhd on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Tenaga Nasional Bhd or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greatech Technology Bhd vs. Tenaga Nasional Bhd
Performance |
| Timeline |
| Greatech Technology Bhd |
| Tenaga Nasional Bhd |
Greatech Technology and Tenaga Nasional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greatech Technology and Tenaga Nasional
The main advantage of trading using opposite Greatech Technology and Tenaga Nasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greatech Technology position performs unexpectedly, Tenaga Nasional 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 Tenaga Nasional will offset losses from the drop in Tenaga Nasional's long position.| Greatech Technology vs. K One Technology Bhd | Greatech Technology vs. Petronas Chemicals Group | Greatech Technology vs. Coraza Integrated Technology | Greatech Technology vs. ES Ceramics Technology |
| Tenaga Nasional vs. YX Precious Metals | Tenaga Nasional vs. Oriental Food Industries | Tenaga Nasional vs. Berjaya Food Bhd | Tenaga Nasional vs. SSF Home Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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