Correlation Between Malayan Banking and Cosmos Technology
Can any of the company-specific risk be diversified away by investing in both Malayan Banking and Cosmos Technology 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 Malayan Banking and Cosmos Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Malayan Banking Bhd and Cosmos Technology International, you can compare the effects of market volatilities on Malayan Banking and Cosmos Technology 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 Malayan Banking with a short position of Cosmos Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malayan Banking and Cosmos Technology.
Diversification Opportunities for Malayan Banking and Cosmos Technology
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Malayan and Cosmos is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Malayan Banking Bhd and Cosmos Technology Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos Technology and Malayan Banking 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 Malayan Banking Bhd are associated (or correlated) with Cosmos Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos Technology has no effect on the direction of Malayan Banking i.e., Malayan Banking and Cosmos Technology go up and down completely randomly.
Pair Corralation between Malayan Banking and Cosmos Technology
Assuming the 90 days trading horizon Malayan Banking is expected to generate 1.89 times less return on investment than Cosmos Technology. But when comparing it to its historical volatility, Malayan Banking Bhd is 2.97 times less risky than Cosmos Technology. It trades about 0.08 of its potential returns per unit of risk. Cosmos Technology International is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Cosmos Technology International on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Cosmos Technology International or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malayan Banking Bhd vs. Cosmos Technology Internationa
Performance |
| Timeline |
| Malayan Banking Bhd |
| Cosmos Technology |
Malayan Banking and Cosmos Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malayan Banking and Cosmos Technology
The main advantage of trading using opposite Malayan Banking and Cosmos Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malayan Banking position performs unexpectedly, Cosmos Technology 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 Cosmos Technology will offset losses from the drop in Cosmos Technology's long position.| Malayan Banking vs. Public Bank Bhd | Malayan Banking vs. Hong Leong Bank | Malayan Banking vs. RHB Bank Bhd |
| Cosmos Technology vs. ES Ceramics Technology | Cosmos Technology vs. TAS Offshore Bhd | Cosmos Technology vs. Awanbiru Technology Bhd | Cosmos Technology vs. Greatech 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |