Correlation Between Insas Bhd and Radiant Globaltech
Can any of the company-specific risk be diversified away by investing in both Insas Bhd and Radiant Globaltech 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 Insas Bhd and Radiant Globaltech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insas Bhd and Radiant Globaltech Bhd, you can compare the effects of market volatilities on Insas Bhd and Radiant Globaltech 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 Insas Bhd with a short position of Radiant Globaltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insas Bhd and Radiant Globaltech.
Diversification Opportunities for Insas Bhd and Radiant Globaltech
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Insas and Radiant is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Insas Bhd and Radiant Globaltech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radiant Globaltech Bhd and Insas Bhd 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 Insas Bhd are associated (or correlated) with Radiant Globaltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radiant Globaltech Bhd has no effect on the direction of Insas Bhd i.e., Insas Bhd and Radiant Globaltech go up and down completely randomly.
Pair Corralation between Insas Bhd and Radiant Globaltech
Assuming the 90 days trading horizon Insas Bhd is expected to generate 0.63 times more return on investment than Radiant Globaltech. However, Insas Bhd is 1.58 times less risky than Radiant Globaltech. It trades about -0.03 of its potential returns per unit of risk. Radiant Globaltech Bhd is currently generating about -0.04 per unit of risk. If you would invest 96.00 in Insas Bhd on September 12, 2024 and sell it today you would lose (3.00) from holding Insas Bhd or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Insas Bhd vs. Radiant Globaltech Bhd
Performance |
| Timeline |
| Insas Bhd |
| Radiant Globaltech Bhd |
Insas Bhd and Radiant Globaltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insas Bhd and Radiant Globaltech
The main advantage of trading using opposite Insas Bhd and Radiant Globaltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insas Bhd position performs unexpectedly, Radiant Globaltech 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 Radiant Globaltech will offset losses from the drop in Radiant Globaltech's long position.| Insas Bhd vs. Mycron Steel Bhd | Insas Bhd vs. Aeon Credit Service | Insas Bhd vs. Malaysia Steel Works | Insas Bhd vs. Leader Steel Holdings |
| Radiant Globaltech vs. Mr D I | Radiant Globaltech vs. Senheng New Retail | Radiant Globaltech vs. Al Aqar Healthcare | Radiant Globaltech 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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