Correlation Between Awanbiru Technology and Public Bank
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology and Public Bank 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 Public Bank 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 Public Bank Bhd, you can compare the effects of market volatilities on Awanbiru Technology and Public Bank 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 Public Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and Public Bank.
Diversification Opportunities for Awanbiru Technology and Public Bank
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Awanbiru and Public is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology Bhd and Public Bank Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Bank 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 Public Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Bank Bhd has no effect on the direction of Awanbiru Technology i.e., Awanbiru Technology and Public Bank go up and down completely randomly.
Pair Corralation between Awanbiru Technology and Public Bank
Assuming the 90 days trading horizon Awanbiru Technology Bhd is expected to generate 6.65 times more return on investment than Public Bank. However, Awanbiru Technology is 6.65 times more volatile than Public Bank Bhd. It trades about 0.08 of its potential returns per unit of risk. Public Bank Bhd is currently generating about -0.08 per unit of risk. If you would invest 33.00 in Awanbiru Technology Bhd on October 20, 2024 and sell it today you would earn a total of 2.00 from holding Awanbiru Technology Bhd or generate 6.06% 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. Public Bank Bhd
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| Public Bank Bhd |
Awanbiru Technology and Public Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and Public Bank
The main advantage of trading using opposite Awanbiru Technology and Public Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology position performs unexpectedly, Public Bank 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 Public Bank will offset losses from the drop in Public Bank's long position.| Awanbiru Technology vs. Tex Cycle Technology | Awanbiru Technology vs. TAS Offshore Bhd | Awanbiru Technology vs. Computer Forms Bhd | Awanbiru Technology vs. CB Industrial Product |
| Public Bank vs. KPJ Healthcare Bhd | Public Bank vs. Diversified Gateway Solutions | Public Bank vs. Dataprep Holdings Bhd | Public Bank vs. Eonmetall Group 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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