Correlation Between Steel Hawk and PGF Capital
Can any of the company-specific risk be diversified away by investing in both Steel Hawk and PGF Capital 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 PGF Capital 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 PGF Capital Bhd, you can compare the effects of market volatilities on Steel Hawk and PGF Capital 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 PGF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Hawk and PGF Capital.
Diversification Opportunities for Steel Hawk and PGF Capital
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Steel and PGF is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Steel Hawk Berhad and PGF Capital Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGF Capital 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 PGF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGF Capital Bhd has no effect on the direction of Steel Hawk i.e., Steel Hawk and PGF Capital go up and down completely randomly.
Pair Corralation between Steel Hawk and PGF Capital
Assuming the 90 days trading horizon Steel Hawk Berhad is expected to generate 1.38 times more return on investment than PGF Capital. However, Steel Hawk is 1.38 times more volatile than PGF Capital Bhd. It trades about 0.01 of its potential returns per unit of risk. PGF Capital Bhd is currently generating about 0.01 per unit of risk. If you would invest 45.00 in Steel Hawk Berhad on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Steel Hawk Berhad or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Steel Hawk Berhad vs. PGF Capital Bhd
Performance |
| Timeline |
| Steel Hawk Berhad |
| PGF Capital Bhd |
Steel Hawk and PGF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Hawk and PGF Capital
The main advantage of trading using opposite Steel Hawk and PGF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Hawk position performs unexpectedly, PGF Capital 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 PGF Capital will offset losses from the drop in PGF Capital's long position.| Steel Hawk vs. Al Aqar Healthcare | Steel Hawk vs. Ho Hup Construction | Steel Hawk vs. Cosmos Technology International | Steel Hawk vs. Computer Forms Bhd |
| PGF Capital vs. Tex Cycle Technology | PGF Capital vs. YX Precious Metals | PGF Capital vs. Bank Islam Malaysia | PGF Capital vs. PMB Technology 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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