Correlation Between Greatech Technology and PMB Technology
Can any of the company-specific risk be diversified away by investing in both Greatech Technology and PMB Technology 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 PMB Technology 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 PMB Technology Bhd, you can compare the effects of market volatilities on Greatech Technology and PMB Technology 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 PMB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greatech Technology and PMB Technology.
Diversification Opportunities for Greatech Technology and PMB Technology
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greatech and PMB is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Greatech Technology Bhd and PMB Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PMB Technology 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 PMB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PMB Technology Bhd has no effect on the direction of Greatech Technology i.e., Greatech Technology and PMB Technology go up and down completely randomly.
Pair Corralation between Greatech Technology and PMB Technology
Assuming the 90 days trading horizon Greatech Technology Bhd is expected to generate 0.82 times more return on investment than PMB Technology. However, Greatech Technology Bhd is 1.21 times less risky than PMB Technology. It trades about -0.01 of its potential returns per unit of risk. PMB Technology Bhd is currently generating about -0.06 per unit of risk. If you would invest 253.00 in Greatech Technology Bhd on September 3, 2024 and sell it today you would lose (47.00) from holding Greatech Technology Bhd or give up 18.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greatech Technology Bhd vs. PMB Technology Bhd
Performance |
| Timeline |
| Greatech Technology Bhd |
| PMB Technology Bhd |
Greatech Technology and PMB Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greatech Technology and PMB Technology
The main advantage of trading using opposite Greatech Technology and PMB Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greatech Technology position performs unexpectedly, PMB Technology 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 PMB Technology will offset losses from the drop in PMB Technology's long position.| Greatech Technology vs. Genetec Technology Bhd | Greatech Technology vs. PIE Industrial Bhd | Greatech Technology vs. Dufu Tech Corp | Greatech Technology vs. Supercomnet Technologies Bhd |
| PMB Technology vs. Press Metal Bhd | PMB Technology vs. Pantech Group Holdings | PMB Technology vs. CSC Steel Holdings | PMB Technology vs. Southern Steel 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |