Correlation Between Aeon Credit and Resintech Bhd
Can any of the company-specific risk be diversified away by investing in both Aeon Credit and Resintech 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 Resintech 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 Resintech Bhd, you can compare the effects of market volatilities on Aeon Credit and Resintech 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 Resintech Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeon Credit and Resintech Bhd.
Diversification Opportunities for Aeon Credit and Resintech Bhd
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aeon and Resintech is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Aeon Credit Service and Resintech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resintech 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 Resintech Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resintech Bhd has no effect on the direction of Aeon Credit i.e., Aeon Credit and Resintech Bhd go up and down completely randomly.
Pair Corralation between Aeon Credit and Resintech Bhd
Assuming the 90 days trading horizon Aeon Credit Service is expected to under-perform the Resintech Bhd. But the stock apears to be less risky and, when comparing its historical volatility, Aeon Credit Service is 2.6 times less risky than Resintech Bhd. The stock trades about -0.36 of its potential returns per unit of risk. The Resintech Bhd is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 71.00 in Resintech Bhd on November 4, 2024 and sell it today you would lose (1.00) from holding Resintech Bhd or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeon Credit Service vs. Resintech Bhd
Performance |
| Timeline |
| Aeon Credit Service |
| Resintech Bhd |
Aeon Credit and Resintech Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeon Credit and Resintech Bhd
The main advantage of trading using opposite Aeon Credit and Resintech Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeon Credit position performs unexpectedly, Resintech 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 Resintech Bhd will offset losses from the drop in Resintech Bhd's long position.| Aeon Credit vs. Malaysia Steel Works | Aeon Credit vs. Sunway Construction Group | Aeon Credit vs. Star Media Group | Aeon Credit vs. Homeritz Bhd |
| Resintech Bhd vs. Choo Bee Metal | Resintech Bhd vs. Sports Toto Berhad | Resintech Bhd vs. FARM FRESH BERHAD | Resintech Bhd vs. KPJ Healthcare 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |