Correlation Between Awanbiru Technology and Malayan Banking
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology and Malayan Banking 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 Malayan Banking 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 Malayan Banking Bhd, you can compare the effects of market volatilities on Awanbiru Technology and Malayan Banking 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 Malayan Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and Malayan Banking.
Diversification Opportunities for Awanbiru Technology and Malayan Banking
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Awanbiru and Malayan is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology Bhd and Malayan Banking Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malayan Banking Bhd 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 Malayan Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malayan Banking Bhd has no effect on the direction of Awanbiru Technology i.e., Awanbiru Technology and Malayan Banking go up and down completely randomly.
Pair Corralation between Awanbiru Technology and Malayan Banking
Assuming the 90 days trading horizon Awanbiru Technology Bhd is expected to generate 4.63 times more return on investment than Malayan Banking. However, Awanbiru Technology is 4.63 times more volatile than Malayan Banking Bhd. It trades about 0.05 of its potential returns per unit of risk. Malayan Banking Bhd is currently generating about -0.13 per unit of risk. If you would invest 34.00 in Awanbiru Technology Bhd on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Awanbiru Technology Bhd or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awanbiru Technology Bhd vs. Malayan Banking Bhd
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| Malayan Banking Bhd |
Awanbiru Technology and Malayan Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and Malayan Banking
The main advantage of trading using opposite Awanbiru Technology and Malayan Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology position performs unexpectedly, Malayan Banking 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 Malayan Banking will offset losses from the drop in Malayan Banking'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 |
| Malayan Banking vs. Press Metal Bhd | Malayan Banking vs. Choo Bee Metal | Malayan Banking vs. YX Precious Metals | Malayan Banking vs. Computer Forms 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |