Correlation Between HeiTech Padu and Awanbiru Technology
Can any of the company-specific risk be diversified away by investing in both HeiTech Padu and Awanbiru 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 Awanbiru 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 Awanbiru Technology Bhd, you can compare the effects of market volatilities on HeiTech Padu and Awanbiru 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 Awanbiru Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeiTech Padu and Awanbiru Technology.
Diversification Opportunities for HeiTech Padu and Awanbiru Technology
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HeiTech and Awanbiru is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding HeiTech Padu Bhd and Awanbiru Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awanbiru 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 Awanbiru Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awanbiru Technology Bhd has no effect on the direction of HeiTech Padu i.e., HeiTech Padu and Awanbiru Technology go up and down completely randomly.
Pair Corralation between HeiTech Padu and Awanbiru Technology
Assuming the 90 days trading horizon HeiTech Padu Bhd is expected to generate 1.45 times more return on investment than Awanbiru Technology. However, HeiTech Padu is 1.45 times more volatile than Awanbiru Technology Bhd. It trades about 0.13 of its potential returns per unit of risk. Awanbiru Technology Bhd is currently generating about -0.05 per unit of risk. If you would invest 192.00 in HeiTech Padu Bhd on August 24, 2024 and sell it today you would earn a total of 165.00 from holding HeiTech Padu Bhd or generate 85.94% 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. Awanbiru Technology Bhd
Performance |
| Timeline |
| HeiTech Padu Bhd |
| Awanbiru Technology Bhd |
HeiTech Padu and Awanbiru Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeiTech Padu and Awanbiru Technology
The main advantage of trading using opposite HeiTech Padu and Awanbiru Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeiTech Padu position performs unexpectedly, Awanbiru 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 Awanbiru Technology will offset losses from the drop in Awanbiru Technology's long position.| HeiTech Padu vs. PMB Technology Bhd | HeiTech Padu vs. YX Precious Metals | HeiTech Padu vs. Kawan Food Bhd | HeiTech Padu vs. Oriental Food Industries |
| Awanbiru Technology vs. Datasonic Group Bhd | Awanbiru Technology vs. Systech Bhd | Awanbiru Technology vs. Diversified Gateway Solutions | Awanbiru Technology vs. HeiTech Padu 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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