Correlation Between Awanbiru Technology and ES Ceramics
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology and ES Ceramics 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 Awanbiru Technology and ES Ceramics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awanbiru Technology Bhd and ES Ceramics Technology, you can compare the effects of market volatilities on Awanbiru Technology and ES Ceramics 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 Awanbiru Technology with a short position of ES Ceramics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and ES Ceramics.
Diversification Opportunities for Awanbiru Technology and ES Ceramics
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Awanbiru and 0100 is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology Bhd and ES Ceramics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ES Ceramics Technology and Awanbiru Technology 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 Awanbiru Technology Bhd are associated (or correlated) with ES Ceramics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ES Ceramics Technology has no effect on the direction of Awanbiru Technology i.e., Awanbiru Technology and ES Ceramics go up and down completely randomly.
Pair Corralation between Awanbiru Technology and ES Ceramics
Assuming the 90 days trading horizon Awanbiru Technology Bhd is expected to generate 0.59 times more return on investment than ES Ceramics. However, Awanbiru Technology Bhd is 1.69 times less risky than ES Ceramics. It trades about -0.2 of its potential returns per unit of risk. ES Ceramics Technology is currently generating about -0.14 per unit of risk. If you would invest 35.00 in Awanbiru Technology Bhd on November 28, 2024 and sell it today you would lose (4.00) from holding Awanbiru Technology Bhd or give up 11.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awanbiru Technology Bhd vs. ES Ceramics Technology
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| ES Ceramics Technology |
Awanbiru Technology and ES Ceramics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and ES Ceramics
The main advantage of trading using opposite Awanbiru Technology and ES Ceramics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology position performs unexpectedly, ES Ceramics 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 ES Ceramics will offset losses from the drop in ES Ceramics' long position.| Awanbiru Technology vs. Alliance Financial Group | Awanbiru Technology vs. Public Bank Bhd | Awanbiru Technology vs. Greatech Technology Bhd | Awanbiru Technology vs. Malayan Banking Bhd |
| ES Ceramics vs. Press Metal Bhd | ES Ceramics vs. Carlsberg Brewery Malaysia | ES Ceramics vs. Kossan Rubber Industries | ES Ceramics vs. Ho Hup Construction |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |