Correlation Between Insas Bhd and Axiata Group
Can any of the company-specific risk be diversified away by investing in both Insas Bhd and Axiata 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 Insas Bhd and Axiata Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insas Bhd and Axiata Group Bhd, you can compare the effects of market volatilities on Insas Bhd and Axiata 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 Insas Bhd with a short position of Axiata Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insas Bhd and Axiata Group.
Diversification Opportunities for Insas Bhd and Axiata Group
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Insas and Axiata is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Insas Bhd and Axiata Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axiata Group 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 Axiata Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axiata Group Bhd has no effect on the direction of Insas Bhd i.e., Insas Bhd and Axiata Group go up and down completely randomly.
Pair Corralation between Insas Bhd and Axiata Group
Assuming the 90 days trading horizon Insas Bhd is expected to under-perform the Axiata Group. In addition to that, Insas Bhd is 1.04 times more volatile than Axiata Group Bhd. It trades about -0.09 of its total potential returns per unit of risk. Axiata Group Bhd is currently generating about 0.12 per unit of volatility. If you would invest 226.00 in Axiata Group Bhd on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Axiata Group Bhd or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insas Bhd vs. Axiata Group Bhd
Performance |
| Timeline |
| Insas Bhd |
| Axiata Group Bhd |
Insas Bhd and Axiata Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insas Bhd and Axiata Group
The main advantage of trading using opposite Insas Bhd and Axiata Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insas Bhd position performs unexpectedly, Axiata 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 Axiata Group will offset losses from the drop in Axiata Group's long position.| Insas Bhd vs. Datasonic Group Bhd | Insas Bhd vs. CB Industrial Product | Insas Bhd vs. Press Metal Bhd | Insas Bhd vs. CPE Technology Berhad |
| Axiata Group vs. PMB Technology Bhd | Axiata Group vs. Duopharma Biotech Bhd | Axiata Group vs. Sports Toto Berhad | Axiata Group vs. Aurelius Technologies 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| 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 | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |