Correlation Between Sungei Bagan and Pantech Group
Can any of the company-specific risk be diversified away by investing in both Sungei Bagan and Pantech 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 Sungei Bagan and Pantech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungei Bagan Rubber and Pantech Group Holdings, you can compare the effects of market volatilities on Sungei Bagan and Pantech 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 Sungei Bagan with a short position of Pantech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungei Bagan and Pantech Group.
Diversification Opportunities for Sungei Bagan and Pantech Group
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sungei and Pantech is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sungei Bagan Rubber and Pantech Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pantech Group Holdings and Sungei Bagan 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 Sungei Bagan Rubber are associated (or correlated) with Pantech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pantech Group Holdings has no effect on the direction of Sungei Bagan i.e., Sungei Bagan and Pantech Group go up and down completely randomly.
Pair Corralation between Sungei Bagan and Pantech Group
Assuming the 90 days trading horizon Sungei Bagan Rubber is expected to under-perform the Pantech Group. But the stock apears to be less risky and, when comparing its historical volatility, Sungei Bagan Rubber is 1.07 times less risky than Pantech Group. The stock trades about -0.7 of its potential returns per unit of risk. The Pantech Group Holdings is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 93.00 in Pantech Group Holdings on August 27, 2024 and sell it today you would earn a total of 3.00 from holding Pantech Group Holdings or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungei Bagan Rubber vs. Pantech Group Holdings
Performance |
| Timeline |
| Sungei Bagan Rubber |
| Pantech Group Holdings |
Sungei Bagan and Pantech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungei Bagan and Pantech Group
The main advantage of trading using opposite Sungei Bagan and Pantech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungei Bagan position performs unexpectedly, Pantech 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 Pantech Group will offset losses from the drop in Pantech Group's long position.| Sungei Bagan vs. Nova Wellness Group | Sungei Bagan vs. Ho Hup Construction | Sungei Bagan vs. PMB Technology Bhd | Sungei Bagan vs. DC HEALTHCARE HOLDINGS |
| Pantech Group vs. Eonmetall Group Bhd | Pantech Group vs. Press Metal Bhd | Pantech Group vs. Sungei Bagan Rubber | Pantech Group vs. Petronas Chemicals Group |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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