Correlation Between Pantech Group and Supercomnet Technologies
Can any of the company-specific risk be diversified away by investing in both Pantech Group and Supercomnet Technologies 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 Pantech Group and Supercomnet Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pantech Group Holdings and Supercomnet Technologies Bhd, you can compare the effects of market volatilities on Pantech Group and Supercomnet Technologies 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 Pantech Group with a short position of Supercomnet Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pantech Group and Supercomnet Technologies.
Diversification Opportunities for Pantech Group and Supercomnet Technologies
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pantech and Supercomnet is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Pantech Group Holdings and Supercomnet Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercomnet Technologies and Pantech Group 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 Pantech Group Holdings are associated (or correlated) with Supercomnet Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercomnet Technologies has no effect on the direction of Pantech Group i.e., Pantech Group and Supercomnet Technologies go up and down completely randomly.
Pair Corralation between Pantech Group and Supercomnet Technologies
Assuming the 90 days trading horizon Pantech Group Holdings is expected to generate 0.7 times more return on investment than Supercomnet Technologies. However, Pantech Group Holdings is 1.43 times less risky than Supercomnet Technologies. It trades about -0.04 of its potential returns per unit of risk. Supercomnet Technologies Bhd is currently generating about -0.11 per unit of risk. If you would invest 98.00 in Pantech Group Holdings on September 3, 2024 and sell it today you would lose (2.00) from holding Pantech Group Holdings or give up 2.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pantech Group Holdings vs. Supercomnet Technologies Bhd
Performance |
| Timeline |
| Pantech Group Holdings |
| Supercomnet Technologies |
Pantech Group and Supercomnet Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pantech Group and Supercomnet Technologies
The main advantage of trading using opposite Pantech Group and Supercomnet Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pantech Group position performs unexpectedly, Supercomnet Technologies 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 Supercomnet Technologies will offset losses from the drop in Supercomnet Technologies' long position.| Pantech Group vs. Press Metal Bhd | Pantech Group vs. CSC Steel Holdings | Pantech Group vs. Malaysia Steel Works | Pantech Group vs. Choo Bee Metal |
| Supercomnet Technologies vs. Binasat Communications Bhd | Supercomnet Technologies vs. Awanbiru Technology Bhd | Supercomnet Technologies vs. Tex Cycle Technology | Supercomnet Technologies vs. Homeritz 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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