Correlation Between Hibiscus Petroleum and Choo Bee
Can any of the company-specific risk be diversified away by investing in both Hibiscus Petroleum and Choo Bee 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 Hibiscus Petroleum and Choo Bee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hibiscus Petroleum BHD and Choo Bee Metal, you can compare the effects of market volatilities on Hibiscus Petroleum and Choo Bee 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 Hibiscus Petroleum with a short position of Choo Bee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hibiscus Petroleum and Choo Bee.
Diversification Opportunities for Hibiscus Petroleum and Choo Bee
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hibiscus and Choo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hibiscus Petroleum BHD and Choo Bee Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choo Bee Metal and Hibiscus Petroleum 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 Hibiscus Petroleum BHD are associated (or correlated) with Choo Bee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choo Bee Metal has no effect on the direction of Hibiscus Petroleum i.e., Hibiscus Petroleum and Choo Bee go up and down completely randomly.
Pair Corralation between Hibiscus Petroleum and Choo Bee
Assuming the 90 days trading horizon Hibiscus Petroleum BHD is expected to generate 1.02 times more return on investment than Choo Bee. However, Hibiscus Petroleum is 1.02 times more volatile than Choo Bee Metal. It trades about -0.01 of its potential returns per unit of risk. Choo Bee Metal is currently generating about -0.02 per unit of risk. If you would invest 248.00 in Hibiscus Petroleum BHD on September 3, 2024 and sell it today you would lose (45.00) from holding Hibiscus Petroleum BHD or give up 18.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hibiscus Petroleum BHD vs. Choo Bee Metal
Performance |
| Timeline |
| Hibiscus Petroleum BHD |
| Choo Bee Metal |
Hibiscus Petroleum and Choo Bee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hibiscus Petroleum and Choo Bee
The main advantage of trading using opposite Hibiscus Petroleum and Choo Bee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hibiscus Petroleum position performs unexpectedly, Choo Bee 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 Choo Bee will offset losses from the drop in Choo Bee's long position.| Hibiscus Petroleum vs. Choo Bee Metal | Hibiscus Petroleum vs. YX Precious Metals | Hibiscus Petroleum vs. YTL Hospitality REIT | Hibiscus Petroleum vs. Melewar Industrial Group |
| Choo Bee vs. Media Prima Bhd | Choo Bee vs. Computer Forms Bhd | Choo Bee vs. Cloudpoint Technology Berhad | Choo Bee vs. Malaysia Steel Works |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |