Correlation Between Aeon Credit and Systech Bhd
Can any of the company-specific risk be diversified away by investing in both Aeon Credit and Systech Bhd 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 Aeon Credit and Systech Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeon Credit Service and Systech Bhd, you can compare the effects of market volatilities on Aeon Credit and Systech Bhd 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 Aeon Credit with a short position of Systech Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeon Credit and Systech Bhd.
Diversification Opportunities for Aeon Credit and Systech Bhd
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aeon and Systech is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Aeon Credit Service and Systech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systech Bhd and Aeon Credit 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 Aeon Credit Service are associated (or correlated) with Systech Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systech Bhd has no effect on the direction of Aeon Credit i.e., Aeon Credit and Systech Bhd go up and down completely randomly.
Pair Corralation between Aeon Credit and Systech Bhd
Assuming the 90 days trading horizon Aeon Credit Service is expected to generate 0.32 times more return on investment than Systech Bhd. However, Aeon Credit Service is 3.12 times less risky than Systech Bhd. It trades about -0.09 of its potential returns per unit of risk. Systech Bhd is currently generating about -0.03 per unit of risk. If you would invest 662.00 in Aeon Credit Service on November 3, 2024 and sell it today you would lose (77.00) from holding Aeon Credit Service or give up 11.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeon Credit Service vs. Systech Bhd
Performance |
| Timeline |
| Aeon Credit Service |
| Systech Bhd |
Aeon Credit and Systech Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeon Credit and Systech Bhd
The main advantage of trading using opposite Aeon Credit and Systech Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeon Credit position performs unexpectedly, Systech Bhd 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 Systech Bhd will offset losses from the drop in Systech Bhd's long position.| Aeon Credit vs. Petronas Chemicals Group | Aeon Credit vs. Cloudpoint Technology Berhad | Aeon Credit vs. Dufu Tech Corp | Aeon Credit vs. Dnonce Tech Bhd |
| Systech Bhd vs. YTL Hospitality REIT | Systech Bhd vs. Homeritz Bhd | Systech Bhd vs. British American Tobacco | Systech Bhd vs. Binasat Communications 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |