Correlation Between Cengild Medical and Unisem M
Can any of the company-specific risk be diversified away by investing in both Cengild Medical and Unisem M 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 Unisem M 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 Unisem M Bhd, you can compare the effects of market volatilities on Cengild Medical and Unisem M 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 Unisem M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cengild Medical and Unisem M.
Diversification Opportunities for Cengild Medical and Unisem M
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cengild and Unisem is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cengild Medical Berhad and Unisem M Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unisem M 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 Unisem M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unisem M Bhd has no effect on the direction of Cengild Medical i.e., Cengild Medical and Unisem M go up and down completely randomly.
Pair Corralation between Cengild Medical and Unisem M
Assuming the 90 days trading horizon Cengild Medical Berhad is expected to generate 2.32 times more return on investment than Unisem M. However, Cengild Medical is 2.32 times more volatile than Unisem M Bhd. It trades about 0.13 of its potential returns per unit of risk. Unisem M Bhd is currently generating about 0.1 per unit of risk. If you would invest 25.00 in Cengild Medical Berhad on September 18, 2024 and sell it today you would earn a total of 2.00 from holding Cengild Medical Berhad or generate 8.0% 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. Unisem M Bhd
Performance |
| Timeline |
| Cengild Medical Berhad |
| Unisem M Bhd |
Cengild Medical and Unisem M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cengild Medical and Unisem M
The main advantage of trading using opposite Cengild Medical and Unisem M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cengild Medical position performs unexpectedly, Unisem M 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 Unisem M will offset losses from the drop in Unisem M'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 |
| Unisem M vs. Cloudpoint Technology Berhad | Unisem M vs. Lyc Healthcare Bhd | Unisem M vs. Cengild Medical Berhad | Unisem M vs. Nova Wellness 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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