Correlation Between Pantech Group and Dataprep Holdings
Can any of the company-specific risk be diversified away by investing in both Pantech Group and Dataprep Holdings 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 Dataprep Holdings 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 Dataprep Holdings Bhd, you can compare the effects of market volatilities on Pantech Group and Dataprep Holdings 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 Dataprep Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pantech Group and Dataprep Holdings.
Diversification Opportunities for Pantech Group and Dataprep Holdings
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pantech and Dataprep is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Pantech Group Holdings and Dataprep Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataprep Holdings 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 Dataprep Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataprep Holdings Bhd has no effect on the direction of Pantech Group i.e., Pantech Group and Dataprep Holdings go up and down completely randomly.
Pair Corralation between Pantech Group and Dataprep Holdings
Assuming the 90 days trading horizon Pantech Group Holdings is expected to under-perform the Dataprep Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Pantech Group Holdings is 4.22 times less risky than Dataprep Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The Dataprep Holdings Bhd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Dataprep Holdings Bhd on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Dataprep Holdings Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pantech Group Holdings vs. Dataprep Holdings Bhd
Performance |
| Timeline |
| Pantech Group Holdings |
| Dataprep Holdings Bhd |
Pantech Group and Dataprep Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pantech Group and Dataprep Holdings
The main advantage of trading using opposite Pantech Group and Dataprep Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pantech Group position performs unexpectedly, Dataprep Holdings 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 Dataprep Holdings will offset losses from the drop in Dataprep Holdings' 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 |
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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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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