Correlation Between Awanbiru Technology and Berjaya Food
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology and Berjaya Food 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 Berjaya Food 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 Berjaya Food Bhd, you can compare the effects of market volatilities on Awanbiru Technology and Berjaya Food 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 Berjaya Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and Berjaya Food.
Diversification Opportunities for Awanbiru Technology and Berjaya Food
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Awanbiru and Berjaya is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology Bhd and Berjaya Food Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berjaya Food 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 Berjaya Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berjaya Food Bhd has no effect on the direction of Awanbiru Technology i.e., Awanbiru Technology and Berjaya Food go up and down completely randomly.
Pair Corralation between Awanbiru Technology and Berjaya Food
Assuming the 90 days trading horizon Awanbiru Technology Bhd is expected to generate 2.09 times more return on investment than Berjaya Food. However, Awanbiru Technology is 2.09 times more volatile than Berjaya Food Bhd. It trades about 0.02 of its potential returns per unit of risk. Berjaya Food Bhd is currently generating about -0.06 per unit of risk. If you would invest 44.00 in Awanbiru Technology Bhd on August 24, 2024 and sell it today you would lose (13.00) from holding Awanbiru Technology Bhd or give up 29.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awanbiru Technology Bhd vs. Berjaya Food Bhd
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| Berjaya Food Bhd |
Awanbiru Technology and Berjaya Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and Berjaya Food
The main advantage of trading using opposite Awanbiru Technology and Berjaya Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology position performs unexpectedly, Berjaya Food 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 Berjaya Food will offset losses from the drop in Berjaya Food's long position.| Awanbiru Technology vs. IHH Healthcare Bhd | Awanbiru Technology vs. Diversified Gateway Solutions | Awanbiru Technology vs. Datasonic Group Bhd | Awanbiru Technology vs. Sunway Construction Group |
| Berjaya Food vs. Awanbiru Technology Bhd | Berjaya Food vs. YX Precious Metals | Berjaya Food vs. Privasia Technology Bhd | Berjaya Food vs. PIE Industrial 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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