Correlation Between Carlsberg Brewery and Petronas Chemicals
Can any of the company-specific risk be diversified away by investing in both Carlsberg Brewery and Petronas Chemicals 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 Carlsberg Brewery and Petronas Chemicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg Brewery Malaysia and Petronas Chemicals Group, you can compare the effects of market volatilities on Carlsberg Brewery and Petronas Chemicals 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 Carlsberg Brewery with a short position of Petronas Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg Brewery and Petronas Chemicals.
Diversification Opportunities for Carlsberg Brewery and Petronas Chemicals
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Carlsberg and Petronas is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg Brewery Malaysia and Petronas Chemicals Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petronas Chemicals and Carlsberg Brewery 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 Carlsberg Brewery Malaysia are associated (or correlated) with Petronas Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petronas Chemicals has no effect on the direction of Carlsberg Brewery i.e., Carlsberg Brewery and Petronas Chemicals go up and down completely randomly.
Pair Corralation between Carlsberg Brewery and Petronas Chemicals
Assuming the 90 days trading horizon Carlsberg Brewery Malaysia is expected to generate 0.24 times more return on investment than Petronas Chemicals. However, Carlsberg Brewery Malaysia is 4.13 times less risky than Petronas Chemicals. It trades about -0.29 of its potential returns per unit of risk. Petronas Chemicals Group is currently generating about -0.15 per unit of risk. If you would invest 1,988 in Carlsberg Brewery Malaysia on December 6, 2024 and sell it today you would lose (116.00) from holding Carlsberg Brewery Malaysia or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg Brewery Malaysia vs. Petronas Chemicals Group
Performance |
| Timeline |
| Carlsberg Brewery |
| Petronas Chemicals |
Carlsberg Brewery and Petronas Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg Brewery and Petronas Chemicals
The main advantage of trading using opposite Carlsberg Brewery and Petronas Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg Brewery position performs unexpectedly, Petronas Chemicals 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 Petronas Chemicals will offset losses from the drop in Petronas Chemicals' long position.| Carlsberg Brewery vs. Ho Hup Construction | Carlsberg Brewery vs. Datasonic Group Bhd | Carlsberg Brewery vs. KPJ Healthcare Bhd | Carlsberg Brewery vs. YTL Hospitality REIT |
| Petronas Chemicals vs. K One Technology Bhd | Petronas Chemicals vs. Awanbiru Technology Bhd | Petronas Chemicals vs. Advanced Packaging Tech | Petronas Chemicals vs. Dnonce Tech 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
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |