Correlation Between Pantech Group and Melewar Industrial
Can any of the company-specific risk be diversified away by investing in both Pantech Group and Melewar Industrial 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 Melewar Industrial 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 Melewar Industrial Group, you can compare the effects of market volatilities on Pantech Group and Melewar Industrial 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 Melewar Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pantech Group and Melewar Industrial.
Diversification Opportunities for Pantech Group and Melewar Industrial
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pantech and Melewar is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Pantech Group Holdings and Melewar Industrial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Melewar Industrial 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 Melewar Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Melewar Industrial has no effect on the direction of Pantech Group i.e., Pantech Group and Melewar Industrial go up and down completely randomly.
Pair Corralation between Pantech Group and Melewar Industrial
Assuming the 90 days trading horizon Pantech Group Holdings is expected to generate 0.37 times more return on investment than Melewar Industrial. However, Pantech Group Holdings is 2.74 times less risky than Melewar Industrial. It trades about -0.1 of its potential returns per unit of risk. Melewar Industrial Group is currently generating about -0.07 per unit of risk. If you would invest 93.00 in Pantech Group Holdings on November 3, 2024 and sell it today you would lose (2.00) from holding Pantech Group Holdings or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pantech Group Holdings vs. Melewar Industrial Group
Performance |
| Timeline |
| Pantech Group Holdings |
| Melewar Industrial |
Pantech Group and Melewar Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pantech Group and Melewar Industrial
The main advantage of trading using opposite Pantech Group and Melewar Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pantech Group position performs unexpectedly, Melewar Industrial 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 Melewar Industrial will offset losses from the drop in Melewar Industrial's long position.| Pantech Group vs. Press Metal Bhd | Pantech Group vs. PMB Technology Bhd | Pantech Group vs. CSC Steel Holdings | Pantech Group vs. Coraza Integrated Technology |
| Melewar Industrial vs. Senheng New Retail | Melewar Industrial vs. Hong Leong Bank | Melewar Industrial vs. Farm Price Holdings | Melewar Industrial vs. Diversified Gateway Solutions |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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