Correlation Between Batu Kawan and MQ Technology
Can any of the company-specific risk be diversified away by investing in both Batu Kawan and MQ 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 Batu Kawan and MQ Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Batu Kawan Bhd and MQ Technology Bhd, you can compare the effects of market volatilities on Batu Kawan and MQ 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 Batu Kawan with a short position of MQ Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batu Kawan and MQ Technology.
Diversification Opportunities for Batu Kawan and MQ Technology
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Batu and 0070 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Batu Kawan Bhd and MQ Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQ Technology Bhd and Batu Kawan 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 Batu Kawan Bhd are associated (or correlated) with MQ Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQ Technology Bhd has no effect on the direction of Batu Kawan i.e., Batu Kawan and MQ Technology go up and down completely randomly.
Pair Corralation between Batu Kawan and MQ Technology
Assuming the 90 days trading horizon Batu Kawan Bhd is expected to under-perform the MQ Technology. But the stock apears to be less risky and, when comparing its historical volatility, Batu Kawan Bhd is 8.74 times less risky than MQ Technology. The stock trades about -0.04 of its potential returns per unit of risk. The MQ Technology Bhd is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 9.50 in MQ Technology Bhd on November 3, 2024 and sell it today you would earn a total of 1.50 from holding MQ Technology Bhd or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Batu Kawan Bhd vs. MQ Technology Bhd
Performance |
| Timeline |
| Batu Kawan Bhd |
| MQ Technology Bhd |
Batu Kawan and MQ Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batu Kawan and MQ Technology
The main advantage of trading using opposite Batu Kawan and MQ Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batu Kawan position performs unexpectedly, MQ 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 MQ Technology will offset losses from the drop in MQ Technology's long position.| Batu Kawan vs. British American Tobacco | Batu Kawan vs. Dataprep Holdings Bhd | Batu Kawan vs. Uchi Technologies Bhd | Batu Kawan vs. MI Technovation Bhd |
| MQ Technology vs. Malayan Banking Bhd | MQ Technology vs. Public Bank Bhd | MQ Technology vs. Petronas Chemicals Group | MQ Technology vs. Tenaga Nasional 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 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.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |