Correlation Between Cengild Medical and TechnoDex Bhd
Can any of the company-specific risk be diversified away by investing in both Cengild Medical and TechnoDex Bhd 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 Cengild Medical and TechnoDex Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cengild Medical Berhad and TechnoDex Bhd, you can compare the effects of market volatilities on Cengild Medical and TechnoDex Bhd 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 Cengild Medical with a short position of TechnoDex Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cengild Medical and TechnoDex Bhd.
Diversification Opportunities for Cengild Medical and TechnoDex Bhd
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cengild and TechnoDex is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cengild Medical Berhad and TechnoDex Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechnoDex Bhd and Cengild Medical 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 Cengild Medical Berhad are associated (or correlated) with TechnoDex Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechnoDex Bhd has no effect on the direction of Cengild Medical i.e., Cengild Medical and TechnoDex Bhd go up and down completely randomly.
Pair Corralation between Cengild Medical and TechnoDex Bhd
Assuming the 90 days trading horizon Cengild Medical is expected to generate 2.56 times less return on investment than TechnoDex Bhd. But when comparing it to its historical volatility, Cengild Medical Berhad is 2.38 times less risky than TechnoDex Bhd. It trades about 0.14 of its potential returns per unit of risk. TechnoDex Bhd is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 5.50 in TechnoDex Bhd on September 1, 2024 and sell it today you would earn a total of 1.00 from holding TechnoDex Bhd or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cengild Medical Berhad vs. TechnoDex Bhd
Performance |
| Timeline |
| Cengild Medical Berhad |
| TechnoDex Bhd |
Cengild Medical and TechnoDex Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cengild Medical and TechnoDex Bhd
The main advantage of trading using opposite Cengild Medical and TechnoDex Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cengild Medical position performs unexpectedly, TechnoDex Bhd 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 TechnoDex Bhd will offset losses from the drop in TechnoDex Bhd's long position.| Cengild Medical vs. Malayan Banking Bhd | Cengild Medical vs. Public Bank Bhd | Cengild Medical vs. Petronas Chemicals Group | Cengild Medical vs. Tenaga Nasional Bhd |
| TechnoDex Bhd vs. Datasonic Group Bhd | TechnoDex Bhd vs. Awanbiru Technology Bhd | TechnoDex Bhd vs. Systech Bhd | TechnoDex Bhd vs. Diversified Gateway Solutions |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |