Correlation Between MISC Bhd and MyNEWS Holdings
Can any of the company-specific risk be diversified away by investing in both MISC Bhd and MyNEWS Holdings 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 MISC Bhd and MyNEWS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MISC Bhd and myNEWS Holdings Bhd, you can compare the effects of market volatilities on MISC Bhd and MyNEWS Holdings 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 MISC Bhd with a short position of MyNEWS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MISC Bhd and MyNEWS Holdings.
Diversification Opportunities for MISC Bhd and MyNEWS Holdings
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MISC and MyNEWS is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding MISC Bhd and myNEWS Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on myNEWS Holdings Bhd and MISC 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 MISC Bhd are associated (or correlated) with MyNEWS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of myNEWS Holdings Bhd has no effect on the direction of MISC Bhd i.e., MISC Bhd and MyNEWS Holdings go up and down completely randomly.
Pair Corralation between MISC Bhd and MyNEWS Holdings
Assuming the 90 days trading horizon MISC Bhd is expected to under-perform the MyNEWS Holdings. But the stock apears to be less risky and, when comparing its historical volatility, MISC Bhd is 1.08 times less risky than MyNEWS Holdings. The stock trades about -0.1 of its potential returns per unit of risk. The myNEWS Holdings Bhd is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 61.00 in myNEWS Holdings Bhd on September 2, 2024 and sell it today you would earn a total of 5.00 from holding myNEWS Holdings Bhd or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MISC Bhd vs. myNEWS Holdings Bhd
Performance |
| Timeline |
| MISC Bhd |
| myNEWS Holdings Bhd |
MISC Bhd and MyNEWS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MISC Bhd and MyNEWS Holdings
The main advantage of trading using opposite MISC Bhd and MyNEWS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MISC Bhd position performs unexpectedly, MyNEWS Holdings 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 MyNEWS Holdings will offset losses from the drop in MyNEWS Holdings' long position.| MISC Bhd vs. Lyc Healthcare Bhd | MISC Bhd vs. Sunway Construction Group | MISC Bhd vs. Al Aqar Healthcare | MISC Bhd vs. Datasonic Group Bhd |
| MyNEWS Holdings vs. Eonmetall Group Bhd | MyNEWS Holdings vs. Binasat Communications Bhd | MyNEWS Holdings vs. Press Metal Bhd | MyNEWS Holdings vs. Berjaya Food 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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