Correlation Between Steel Hawk and Eonmetall Group
Can any of the company-specific risk be diversified away by investing in both Steel Hawk and Eonmetall Group 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 Eonmetall Group 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 Eonmetall Group Bhd, you can compare the effects of market volatilities on Steel Hawk and Eonmetall Group 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 Eonmetall Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Hawk and Eonmetall Group.
Diversification Opportunities for Steel Hawk and Eonmetall Group
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Steel and Eonmetall is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Steel Hawk Berhad and Eonmetall Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eonmetall Group 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 Eonmetall Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eonmetall Group Bhd has no effect on the direction of Steel Hawk i.e., Steel Hawk and Eonmetall Group go up and down completely randomly.
Pair Corralation between Steel Hawk and Eonmetall Group
Assuming the 90 days trading horizon Steel Hawk Berhad is expected to generate 6.48 times more return on investment than Eonmetall Group. However, Steel Hawk is 6.48 times more volatile than Eonmetall Group Bhd. It trades about 0.11 of its potential returns per unit of risk. Eonmetall Group Bhd is currently generating about -0.04 per unit of risk. If you would invest 11.00 in Steel Hawk Berhad on November 2, 2024 and sell it today you would earn a total of 34.00 from holding Steel Hawk Berhad or generate 309.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steel Hawk Berhad vs. Eonmetall Group Bhd
Performance |
| Timeline |
| Steel Hawk Berhad |
| Eonmetall Group Bhd |
Steel Hawk and Eonmetall Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Hawk and Eonmetall Group
The main advantage of trading using opposite Steel Hawk and Eonmetall Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Hawk position performs unexpectedly, Eonmetall Group 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 Eonmetall Group will offset losses from the drop in Eonmetall Group's long position.| Steel Hawk vs. Sunzen Biotech Bhd | Steel Hawk vs. Systech Bhd | Steel Hawk vs. Cosmos Technology International | Steel Hawk vs. CPE Technology Berhad |
| Eonmetall Group vs. YX Precious Metals | Eonmetall Group vs. Senheng New Retail | Eonmetall Group vs. Farm Price Holdings | Eonmetall Group vs. Dataprep Holdings 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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