Correlation Between Steel Hawk and Duopharma Biotech
Can any of the company-specific risk be diversified away by investing in both Steel Hawk and Duopharma Biotech 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 Steel Hawk and Duopharma Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steel Hawk Berhad and Duopharma Biotech Bhd, you can compare the effects of market volatilities on Steel Hawk and Duopharma Biotech 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 Steel Hawk with a short position of Duopharma Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Hawk and Duopharma Biotech.
Diversification Opportunities for Steel Hawk and Duopharma Biotech
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Steel and Duopharma is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Steel Hawk Berhad and Duopharma Biotech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duopharma Biotech Bhd and Steel Hawk 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 Steel Hawk Berhad are associated (or correlated) with Duopharma Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duopharma Biotech Bhd has no effect on the direction of Steel Hawk i.e., Steel Hawk and Duopharma Biotech go up and down completely randomly.
Pair Corralation between Steel Hawk and Duopharma Biotech
Assuming the 90 days trading horizon Steel Hawk Berhad is expected to generate 2.38 times more return on investment than Duopharma Biotech. However, Steel Hawk is 2.38 times more volatile than Duopharma Biotech Bhd. It trades about -0.04 of its potential returns per unit of risk. Duopharma Biotech Bhd is currently generating about -0.19 per unit of risk. If you would invest 45.00 in Steel Hawk Berhad on October 20, 2024 and sell it today you would lose (1.00) from holding Steel Hawk Berhad or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steel Hawk Berhad vs. Duopharma Biotech Bhd
Performance |
| Timeline |
| Steel Hawk Berhad |
| Duopharma Biotech Bhd |
Steel Hawk and Duopharma Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Hawk and Duopharma Biotech
The main advantage of trading using opposite Steel Hawk and Duopharma Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Hawk position performs unexpectedly, Duopharma Biotech 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 Duopharma Biotech will offset losses from the drop in Duopharma Biotech's long position.| Steel Hawk vs. CB Industrial Product | Steel Hawk vs. Binasat Communications Bhd | Steel Hawk vs. Eonmetall Group Bhd | Steel Hawk vs. Berjaya Food Bhd |
| Duopharma Biotech vs. Eonmetall Group Bhd | Duopharma Biotech vs. Uchi Technologies Bhd | Duopharma Biotech vs. Ho Hup Construction | Duopharma Biotech vs. YX Precious Metals |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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