Correlation Between Tambun Indah and EA Technique
Can any of the company-specific risk be diversified away by investing in both Tambun Indah and EA Technique 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 Tambun Indah and EA Technique into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tambun Indah Land and EA Technique M, you can compare the effects of market volatilities on Tambun Indah and EA Technique 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 Tambun Indah with a short position of EA Technique. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tambun Indah and EA Technique.
Diversification Opportunities for Tambun Indah and EA Technique
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tambun and 5259 is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Tambun Indah Land and EA Technique M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Technique M and Tambun Indah 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 Tambun Indah Land are associated (or correlated) with EA Technique. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Technique M has no effect on the direction of Tambun Indah i.e., Tambun Indah and EA Technique go up and down completely randomly.
Pair Corralation between Tambun Indah and EA Technique
Assuming the 90 days trading horizon Tambun Indah Land is expected to under-perform the EA Technique. But the stock apears to be less risky and, when comparing its historical volatility, Tambun Indah Land is 1.75 times less risky than EA Technique. The stock trades about -0.12 of its potential returns per unit of risk. The EA Technique M is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 31.00 in EA Technique M on August 30, 2024 and sell it today you would lose (1.00) from holding EA Technique M or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tambun Indah Land vs. EA Technique M
Performance |
| Timeline |
| Tambun Indah Land |
| EA Technique M |
Tambun Indah and EA Technique Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tambun Indah and EA Technique
The main advantage of trading using opposite Tambun Indah and EA Technique positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tambun Indah position performs unexpectedly, EA Technique 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 EA Technique will offset losses from the drop in EA Technique's long position.| Tambun Indah vs. Resintech Bhd | Tambun Indah vs. TAS Offshore Bhd | Tambun Indah vs. Aurelius Technologies Bhd | Tambun Indah vs. Uchi Technologies Bhd |
| EA Technique vs. Digistar Bhd | EA Technique vs. AirAsia X Bhd | EA Technique vs. Tambun Indah Land | EA Technique vs. Insas 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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