Correlation Between MISC Bhd and Techbond Group
Can any of the company-specific risk be diversified away by investing in both MISC Bhd and Techbond 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 MISC Bhd and Techbond Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MISC Bhd and Techbond Group Bhd, you can compare the effects of market volatilities on MISC Bhd and Techbond 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 MISC Bhd with a short position of Techbond Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MISC Bhd and Techbond Group.
Diversification Opportunities for MISC Bhd and Techbond Group
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MISC and Techbond is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding MISC Bhd and Techbond Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techbond Group 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 Techbond Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techbond Group Bhd has no effect on the direction of MISC Bhd i.e., MISC Bhd and Techbond Group go up and down completely randomly.
Pair Corralation between MISC Bhd and Techbond Group
Assuming the 90 days trading horizon MISC Bhd is expected to generate 1.09 times more return on investment than Techbond Group. However, MISC Bhd is 1.09 times more volatile than Techbond Group Bhd. It trades about -0.1 of its potential returns per unit of risk. Techbond Group Bhd is currently generating about -0.3 per unit of risk. If you would invest 747.00 in MISC Bhd on September 1, 2024 and sell it today you would lose (22.00) from holding MISC Bhd or give up 2.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MISC Bhd vs. Techbond Group Bhd
Performance |
| Timeline |
| MISC Bhd |
| Techbond Group Bhd |
MISC Bhd and Techbond Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MISC Bhd and Techbond Group
The main advantage of trading using opposite MISC Bhd and Techbond Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MISC Bhd position performs unexpectedly, Techbond 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 Techbond Group will offset losses from the drop in Techbond Group's long position.| MISC Bhd vs. Press Metal Bhd | MISC Bhd vs. SFP Tech Holdings | MISC Bhd vs. ONETECH SOLUTIONS HOLDINGS | MISC Bhd vs. Sunzen Biotech Bhd |
| Techbond Group vs. Kossan Rubber Industries | Techbond Group vs. Sports Toto Berhad | Techbond Group vs. YTL Hospitality REIT | Techbond Group vs. Apollo Food Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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