Correlation Between Malpac Holdings and FGV Holdings
Can any of the company-specific risk be diversified away by investing in both Malpac Holdings and FGV 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 Malpac Holdings and FGV Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Malpac Holdings Bhd and FGV Holdings Bhd, you can compare the effects of market volatilities on Malpac Holdings and FGV 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 Malpac Holdings with a short position of FGV Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malpac Holdings and FGV Holdings.
Diversification Opportunities for Malpac Holdings and FGV Holdings
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Malpac and FGV is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Malpac Holdings Bhd and FGV Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FGV Holdings Bhd and Malpac Holdings 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 Malpac Holdings Bhd are associated (or correlated) with FGV Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FGV Holdings Bhd has no effect on the direction of Malpac Holdings i.e., Malpac Holdings and FGV Holdings go up and down completely randomly.
Pair Corralation between Malpac Holdings and FGV Holdings
Assuming the 90 days trading horizon Malpac Holdings Bhd is expected to generate 1.02 times more return on investment than FGV Holdings. However, Malpac Holdings is 1.02 times more volatile than FGV Holdings Bhd. It trades about -0.08 of its potential returns per unit of risk. FGV Holdings Bhd is currently generating about -0.1 per unit of risk. If you would invest 85.00 in Malpac Holdings Bhd on October 23, 2024 and sell it today you would lose (2.00) from holding Malpac Holdings Bhd or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malpac Holdings Bhd vs. FGV Holdings Bhd
Performance |
| Timeline |
| Malpac Holdings Bhd |
| FGV Holdings Bhd |
Malpac Holdings and FGV Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malpac Holdings and FGV Holdings
The main advantage of trading using opposite Malpac Holdings and FGV Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malpac Holdings position performs unexpectedly, FGV 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 FGV Holdings will offset losses from the drop in FGV Holdings' long position.| Malpac Holdings vs. FARM FRESH BERHAD | Malpac Holdings vs. Silver Ridge Holdings | Malpac Holdings vs. Tex Cycle Technology | Malpac Holdings vs. Supercomnet Technologies Bhd |
| FGV Holdings vs. Sports Toto Berhad | FGV Holdings vs. Dataprep Holdings Bhd | FGV Holdings vs. Tex Cycle Technology | FGV Holdings vs. RHB Bank 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |