Correlation Between Dagang Nexchange and TechnoDex Bhd
Can any of the company-specific risk be diversified away by investing in both Dagang Nexchange and TechnoDex Bhd 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 Dagang Nexchange and TechnoDex Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dagang Nexchange Bhd and TechnoDex Bhd, you can compare the effects of market volatilities on Dagang Nexchange and TechnoDex Bhd 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 Dagang Nexchange with a short position of TechnoDex Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dagang Nexchange and TechnoDex Bhd.
Diversification Opportunities for Dagang Nexchange and TechnoDex Bhd
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dagang and TechnoDex is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Dagang Nexchange Bhd and TechnoDex Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechnoDex Bhd and Dagang Nexchange 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 Dagang Nexchange Bhd are associated (or correlated) with TechnoDex Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechnoDex Bhd has no effect on the direction of Dagang Nexchange i.e., Dagang Nexchange and TechnoDex Bhd go up and down completely randomly.
Pair Corralation between Dagang Nexchange and TechnoDex Bhd
Assuming the 90 days trading horizon Dagang Nexchange Bhd is expected to under-perform the TechnoDex Bhd. But the stock apears to be less risky and, when comparing its historical volatility, Dagang Nexchange Bhd is 1.79 times less risky than TechnoDex Bhd. The stock trades about -0.02 of its potential returns per unit of risk. The TechnoDex Bhd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8.00 in TechnoDex Bhd on August 28, 2024 and sell it today you would lose (1.50) from holding TechnoDex Bhd or give up 18.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dagang Nexchange Bhd vs. TechnoDex Bhd
Performance |
| Timeline |
| Dagang Nexchange Bhd |
| TechnoDex Bhd |
Dagang Nexchange and TechnoDex Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dagang Nexchange and TechnoDex Bhd
The main advantage of trading using opposite Dagang Nexchange and TechnoDex Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dagang Nexchange position performs unexpectedly, TechnoDex Bhd 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 TechnoDex Bhd will offset losses from the drop in TechnoDex Bhd's long position.| Dagang Nexchange vs. Kossan Rubber Industries | Dagang Nexchange vs. Carlsberg Brewery Malaysia | Dagang Nexchange vs. FARM FRESH BERHAD | Dagang Nexchange vs. YX Precious Metals |
| TechnoDex Bhd vs. Coraza Integrated Technology | TechnoDex Bhd vs. ES Ceramics Technology | TechnoDex Bhd vs. Minetech Resources Bhd | TechnoDex Bhd vs. Riverview Rubber Estates |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |