Correlation Between Awanbiru Technology and Coraza Integrated
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology and Coraza Integrated 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 Coraza Integrated 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 Coraza Integrated Technology, you can compare the effects of market volatilities on Awanbiru Technology and Coraza Integrated 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 Coraza Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and Coraza Integrated.
Diversification Opportunities for Awanbiru Technology and Coraza Integrated
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Awanbiru and Coraza is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology Bhd and Coraza Integrated Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coraza Integrated 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 Coraza Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coraza Integrated has no effect on the direction of Awanbiru Technology i.e., Awanbiru Technology and Coraza Integrated go up and down completely randomly.
Pair Corralation between Awanbiru Technology and Coraza Integrated
Assuming the 90 days trading horizon Awanbiru Technology Bhd is expected to generate 0.8 times more return on investment than Coraza Integrated. However, Awanbiru Technology Bhd is 1.26 times less risky than Coraza Integrated. It trades about -0.16 of its potential returns per unit of risk. Coraza Integrated Technology is currently generating about -0.14 per unit of risk. If you would invest 34.00 in Awanbiru Technology Bhd on November 29, 2024 and sell it today you would lose (3.00) from holding Awanbiru Technology Bhd or give up 8.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awanbiru Technology Bhd vs. Coraza Integrated Technology
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| Coraza Integrated |
Awanbiru Technology and Coraza Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and Coraza Integrated
The main advantage of trading using opposite Awanbiru Technology and Coraza Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology position performs unexpectedly, Coraza Integrated 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 Coraza Integrated will offset losses from the drop in Coraza Integrated's long position.| Awanbiru Technology vs. Lotte Chemical Titan | Awanbiru Technology vs. K One Technology Bhd | Awanbiru Technology vs. Tex Cycle Technology | Awanbiru Technology vs. PIE Industrial Bhd |
| Coraza Integrated vs. Bank Islam Malaysia | Coraza Integrated vs. Privasia Technology Bhd | Coraza Integrated vs. CPE Technology Berhad | Coraza Integrated vs. Malayan Banking 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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