Correlation Between Pantech Group and Aurelius Technologies
Can any of the company-specific risk be diversified away by investing in both Pantech Group and Aurelius 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 Aurelius 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 Aurelius Technologies Bhd, you can compare the effects of market volatilities on Pantech Group and Aurelius 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 Aurelius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pantech Group and Aurelius Technologies.
Diversification Opportunities for Pantech Group and Aurelius Technologies
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pantech and Aurelius is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Pantech Group Holdings and Aurelius Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelius Technologies Bhd 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 Aurelius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelius Technologies Bhd has no effect on the direction of Pantech Group i.e., Pantech Group and Aurelius Technologies go up and down completely randomly.
Pair Corralation between Pantech Group and Aurelius Technologies
Assuming the 90 days trading horizon Pantech Group is expected to generate 1.51 times less return on investment than Aurelius Technologies. But when comparing it to its historical volatility, Pantech Group Holdings is 3.3 times less risky than Aurelius Technologies. It trades about 0.33 of its potential returns per unit of risk. Aurelius Technologies Bhd is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 279.00 in Aurelius Technologies Bhd on September 5, 2024 and sell it today you would earn a total of 22.00 from holding Aurelius Technologies Bhd or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pantech Group Holdings vs. Aurelius Technologies Bhd
Performance |
| Timeline |
| Pantech Group Holdings |
| Aurelius Technologies Bhd |
Pantech Group and Aurelius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pantech Group and Aurelius Technologies
The main advantage of trading using opposite Pantech Group and Aurelius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pantech Group position performs unexpectedly, Aurelius 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 Aurelius Technologies will offset losses from the drop in Aurelius Technologies' long position.The idea behind Pantech Group Holdings and Aurelius Technologies Bhd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Aurelius Technologies vs. Dnonce Tech Bhd | Aurelius Technologies vs. Pantech Group Holdings | Aurelius Technologies vs. Minetech Resources Bhd | Aurelius Technologies 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |