Correlation Between Mesiniaga Bhd and Petronas Chemicals
Can any of the company-specific risk be diversified away by investing in both Mesiniaga Bhd and Petronas Chemicals 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 Mesiniaga Bhd and Petronas Chemicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesiniaga Bhd and Petronas Chemicals Group, you can compare the effects of market volatilities on Mesiniaga Bhd and Petronas Chemicals 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 Mesiniaga Bhd with a short position of Petronas Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesiniaga Bhd and Petronas Chemicals.
Diversification Opportunities for Mesiniaga Bhd and Petronas Chemicals
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mesiniaga and Petronas is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Mesiniaga Bhd and Petronas Chemicals Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petronas Chemicals and Mesiniaga 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 Mesiniaga Bhd are associated (or correlated) with Petronas Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petronas Chemicals has no effect on the direction of Mesiniaga Bhd i.e., Mesiniaga Bhd and Petronas Chemicals go up and down completely randomly.
Pair Corralation between Mesiniaga Bhd and Petronas Chemicals
Assuming the 90 days trading horizon Mesiniaga Bhd is expected to generate 0.78 times more return on investment than Petronas Chemicals. However, Mesiniaga Bhd is 1.29 times less risky than Petronas Chemicals. It trades about 0.01 of its potential returns per unit of risk. Petronas Chemicals Group is currently generating about -0.08 per unit of risk. If you would invest 147.00 in Mesiniaga Bhd on November 2, 2024 and sell it today you would earn a total of 1.00 from holding Mesiniaga Bhd or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesiniaga Bhd vs. Petronas Chemicals Group
Performance |
| Timeline |
| Mesiniaga Bhd |
| Petronas Chemicals |
Mesiniaga Bhd and Petronas Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesiniaga Bhd and Petronas Chemicals
The main advantage of trading using opposite Mesiniaga Bhd and Petronas Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesiniaga Bhd position performs unexpectedly, Petronas Chemicals 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 Petronas Chemicals will offset losses from the drop in Petronas Chemicals' long position.| Mesiniaga Bhd vs. Malayan Banking Bhd | Mesiniaga Bhd vs. Public Bank Bhd | Mesiniaga Bhd vs. Petronas Chemicals Group | Mesiniaga Bhd vs. Tenaga Nasional Bhd |
| Petronas Chemicals vs. Diversified Gateway Solutions | Petronas Chemicals vs. Dataprep Holdings Bhd | Petronas Chemicals vs. IHH Healthcare Bhd | Petronas Chemicals vs. Kluang Rubber |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |