Correlation Between PPB Group and Sunzen Biotech
Can any of the company-specific risk be diversified away by investing in both PPB Group and Sunzen Biotech 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 PPB Group and Sunzen Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PPB Group Bhd and Sunzen Biotech Bhd, you can compare the effects of market volatilities on PPB Group and Sunzen Biotech 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 PPB Group with a short position of Sunzen Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of PPB Group and Sunzen Biotech.
Diversification Opportunities for PPB Group and Sunzen Biotech
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between PPB and Sunzen is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding PPB Group Bhd and Sunzen Biotech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunzen Biotech Bhd and PPB Group 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 PPB Group Bhd are associated (or correlated) with Sunzen Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunzen Biotech Bhd has no effect on the direction of PPB Group i.e., PPB Group and Sunzen Biotech go up and down completely randomly.
Pair Corralation between PPB Group and Sunzen Biotech
Assuming the 90 days trading horizon PPB Group Bhd is expected to under-perform the Sunzen Biotech. But the stock apears to be less risky and, when comparing its historical volatility, PPB Group Bhd is 1.88 times less risky than Sunzen Biotech. The stock trades about -0.19 of its potential returns per unit of risk. The Sunzen Biotech Bhd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 32.00 in Sunzen Biotech Bhd on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Sunzen Biotech Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PPB Group Bhd vs. Sunzen Biotech Bhd
Performance |
| Timeline |
| PPB Group Bhd |
| Sunzen Biotech Bhd |
PPB Group and Sunzen Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PPB Group and Sunzen Biotech
The main advantage of trading using opposite PPB Group and Sunzen Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PPB Group position performs unexpectedly, Sunzen Biotech 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 Sunzen Biotech will offset losses from the drop in Sunzen Biotech's long position.| PPB Group vs. Press Metal Bhd | PPB Group vs. KPJ Healthcare Bhd | PPB Group vs. YX Precious Metals | PPB Group vs. IHH Healthcare Bhd |
| Sunzen Biotech vs. Homeritz Bhd | Sunzen Biotech vs. Icon Offshore Bhd | Sunzen Biotech vs. Kossan Rubber Industries | Sunzen Biotech vs. Media Prima 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |