Correlation Between Berjaya Food and Protasco Bhd
Can any of the company-specific risk be diversified away by investing in both Berjaya Food and Protasco 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 Berjaya Food and Protasco Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berjaya Food Bhd and Protasco Bhd, you can compare the effects of market volatilities on Berjaya Food and Protasco 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 Berjaya Food with a short position of Protasco Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berjaya Food and Protasco Bhd.
Diversification Opportunities for Berjaya Food and Protasco Bhd
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berjaya and Protasco is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Berjaya Food Bhd and Protasco Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protasco Bhd and Berjaya Food 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 Berjaya Food Bhd are associated (or correlated) with Protasco Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protasco Bhd has no effect on the direction of Berjaya Food i.e., Berjaya Food and Protasco Bhd go up and down completely randomly.
Pair Corralation between Berjaya Food and Protasco Bhd
Assuming the 90 days trading horizon Berjaya Food Bhd is expected to under-perform the Protasco Bhd. But the stock apears to be less risky and, when comparing its historical volatility, Berjaya Food Bhd is 1.68 times less risky than Protasco Bhd. The stock trades about -0.28 of its potential returns per unit of risk. The Protasco Bhd is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Protasco Bhd on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Protasco Bhd or generate 34.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berjaya Food Bhd vs. Protasco Bhd
Performance |
| Timeline |
| Berjaya Food Bhd |
| Protasco Bhd |
Berjaya Food and Protasco Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berjaya Food and Protasco Bhd
The main advantage of trading using opposite Berjaya Food and Protasco Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berjaya Food position performs unexpectedly, Protasco 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 Protasco Bhd will offset losses from the drop in Protasco Bhd's long position.| Berjaya Food vs. Shangri La Hotels | Berjaya Food vs. Digistar Bhd | Berjaya Food vs. Minetech Resources Bhd | Berjaya Food vs. Swift Haulage Bhd |
| Protasco Bhd vs. Berjaya Food Bhd | Protasco Bhd vs. Mercury Industries Bhd | Protasco Bhd vs. Apollo Food Holdings | Protasco Bhd vs. CB Industrial Product |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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