Correlation Between CSC Steel and Malaysia Steel
Can any of the company-specific risk be diversified away by investing in both CSC Steel and Malaysia Steel 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 CSC Steel and Malaysia Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSC Steel Holdings and Malaysia Steel Works, you can compare the effects of market volatilities on CSC Steel and Malaysia Steel 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 CSC Steel with a short position of Malaysia Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSC Steel and Malaysia Steel.
Diversification Opportunities for CSC Steel and Malaysia Steel
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CSC and Malaysia is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CSC Steel Holdings and Malaysia Steel Works in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malaysia Steel Works and CSC Steel 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 CSC Steel Holdings are associated (or correlated) with Malaysia Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malaysia Steel Works has no effect on the direction of CSC Steel i.e., CSC Steel and Malaysia Steel go up and down completely randomly.
Pair Corralation between CSC Steel and Malaysia Steel
Assuming the 90 days trading horizon CSC Steel Holdings is expected to generate 0.91 times more return on investment than Malaysia Steel. However, CSC Steel Holdings is 1.1 times less risky than Malaysia Steel. It trades about 0.04 of its potential returns per unit of risk. Malaysia Steel Works is currently generating about -0.12 per unit of risk. If you would invest 118.00 in CSC Steel Holdings on August 24, 2024 and sell it today you would earn a total of 1.00 from holding CSC Steel Holdings or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSC Steel Holdings vs. Malaysia Steel Works
Performance |
| Timeline |
| CSC Steel Holdings |
| Malaysia Steel Works |
CSC Steel and Malaysia Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSC Steel and Malaysia Steel
The main advantage of trading using opposite CSC Steel and Malaysia Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSC Steel position performs unexpectedly, Malaysia Steel 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 Malaysia Steel will offset losses from the drop in Malaysia Steel's long position.| CSC Steel vs. Press Metal Bhd | CSC Steel vs. Pantech Group Holdings | CSC Steel vs. Coraza Integrated Technology | CSC Steel vs. Southern Steel Bhd |
| Malaysia Steel vs. Press Metal Bhd | Malaysia Steel vs. Pantech Group Holdings | Malaysia Steel vs. CSC Steel Holdings | Malaysia Steel vs. Coraza Integrated Technology |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |