Correlation Between HeiTech Padu and MTouche Technology
Can any of the company-specific risk be diversified away by investing in both HeiTech Padu and MTouche Technology 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 HeiTech Padu and MTouche Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HeiTech Padu Bhd and mTouche Technology Bhd, you can compare the effects of market volatilities on HeiTech Padu and MTouche Technology 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 HeiTech Padu with a short position of MTouche Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeiTech Padu and MTouche Technology.
Diversification Opportunities for HeiTech Padu and MTouche Technology
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between HeiTech and MTouche is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding HeiTech Padu Bhd and mTouche Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mTouche Technology Bhd and HeiTech Padu 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 HeiTech Padu Bhd are associated (or correlated) with MTouche Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mTouche Technology Bhd has no effect on the direction of HeiTech Padu i.e., HeiTech Padu and MTouche Technology go up and down completely randomly.
Pair Corralation between HeiTech Padu and MTouche Technology
Assuming the 90 days trading horizon HeiTech Padu Bhd is expected to generate 0.7 times more return on investment than MTouche Technology. However, HeiTech Padu Bhd is 1.42 times less risky than MTouche Technology. It trades about 0.16 of its potential returns per unit of risk. mTouche Technology Bhd is currently generating about -0.01 per unit of risk. If you would invest 215.00 in HeiTech Padu Bhd on August 28, 2024 and sell it today you would earn a total of 125.00 from holding HeiTech Padu Bhd or generate 58.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeiTech Padu Bhd vs. mTouche Technology Bhd
Performance |
| Timeline |
| HeiTech Padu Bhd |
| mTouche Technology Bhd |
HeiTech Padu and MTouche Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeiTech Padu and MTouche Technology
The main advantage of trading using opposite HeiTech Padu and MTouche Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeiTech Padu position performs unexpectedly, MTouche Technology 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 MTouche Technology will offset losses from the drop in MTouche Technology's long position.| HeiTech Padu vs. ES Ceramics Technology | HeiTech Padu vs. Greatech Technology Bhd | HeiTech Padu vs. Carlsberg Brewery Malaysia | HeiTech Padu vs. FARM FRESH BERHAD |
| MTouche Technology vs. Southern Steel Bhd | MTouche Technology vs. Diversified Gateway Solutions | MTouche Technology vs. Carlsberg Brewery Malaysia | MTouche Technology vs. MClean Technologies 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |