Correlation Between PBA Holdings and Public Packages
Can any of the company-specific risk be diversified away by investing in both PBA Holdings and Public Packages 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 PBA Holdings and Public Packages into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PBA Holdings Bhd and Public Packages Holdings, you can compare the effects of market volatilities on PBA Holdings and Public Packages 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 PBA Holdings with a short position of Public Packages. Check out your portfolio center. Please also check ongoing floating volatility patterns of PBA Holdings and Public Packages.
Diversification Opportunities for PBA Holdings and Public Packages
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PBA and Public is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding PBA Holdings Bhd and Public Packages Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Packages Holdings and PBA 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 PBA Holdings Bhd are associated (or correlated) with Public Packages. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Packages Holdings has no effect on the direction of PBA Holdings i.e., PBA Holdings and Public Packages go up and down completely randomly.
Pair Corralation between PBA Holdings and Public Packages
Assuming the 90 days trading horizon PBA Holdings Bhd is expected to under-perform the Public Packages. In addition to that, PBA Holdings is 2.39 times more volatile than Public Packages Holdings. It trades about -0.06 of its total potential returns per unit of risk. Public Packages Holdings is currently generating about -0.13 per unit of volatility. If you would invest 80.00 in Public Packages Holdings on November 28, 2024 and sell it today you would lose (2.00) from holding Public Packages Holdings or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
PBA Holdings Bhd vs. Public Packages Holdings
Performance |
| Timeline |
| PBA Holdings Bhd |
| Public Packages Holdings |
PBA Holdings and Public Packages Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PBA Holdings and Public Packages
The main advantage of trading using opposite PBA Holdings and Public Packages positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PBA Holdings position performs unexpectedly, Public Packages 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 Public Packages will offset losses from the drop in Public Packages' long position.| PBA Holdings vs. Farm Price Holdings | PBA Holdings vs. EA Technique M | PBA Holdings vs. Supercomnet Technologies Bhd | PBA Holdings vs. BP Plastics Holding |
| Public Packages vs. British American Tobacco | Public Packages vs. Riverview Rubber Estates | Public Packages vs. Alliance Financial Group | Public Packages vs. Sunway Construction Group |
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
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |