Correlation Between Awanbiru Technology and SFP Tech
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology and SFP Tech 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 SFP Tech 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 SFP Tech Holdings, you can compare the effects of market volatilities on Awanbiru Technology and SFP Tech 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 SFP Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and SFP Tech.
Diversification Opportunities for Awanbiru Technology and SFP Tech
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Awanbiru and SFP is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology Bhd and SFP Tech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFP Tech Holdings 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 SFP Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFP Tech Holdings has no effect on the direction of Awanbiru Technology i.e., Awanbiru Technology and SFP Tech go up and down completely randomly.
Pair Corralation between Awanbiru Technology and SFP Tech
Assuming the 90 days trading horizon Awanbiru Technology Bhd is expected to generate 2.5 times more return on investment than SFP Tech. However, Awanbiru Technology is 2.5 times more volatile than SFP Tech Holdings. It trades about 0.09 of its potential returns per unit of risk. SFP Tech Holdings is currently generating about -0.18 per unit of risk. If you would invest 32.00 in Awanbiru Technology Bhd on November 2, 2024 and sell it today you would earn a total of 2.00 from holding Awanbiru Technology Bhd or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awanbiru Technology Bhd vs. SFP Tech Holdings
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| SFP Tech Holdings |
Awanbiru Technology and SFP Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and SFP Tech
The main advantage of trading using opposite Awanbiru Technology and SFP Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology position performs unexpectedly, SFP Tech 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 SFP Tech will offset losses from the drop in SFP Tech's long position.| Awanbiru Technology vs. Datasonic Group Bhd | Awanbiru Technology vs. Dataprep Holdings Bhd | Awanbiru Technology vs. Systech Bhd | Awanbiru Technology vs. TechnoDex Bhd |
| SFP Tech vs. Public Packages Holdings | SFP Tech vs. Kluang Rubber | SFP Tech vs. Kossan Rubber Industries | SFP Tech vs. Petronas Chemicals Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |