Correlation Between Awanbiru Technology and Bank Islam
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology and Bank Islam 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 Bank Islam 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 Bank Islam Malaysia, you can compare the effects of market volatilities on Awanbiru Technology and Bank Islam 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 Bank Islam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and Bank Islam.
Diversification Opportunities for Awanbiru Technology and Bank Islam
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Awanbiru and Bank is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology Bhd and Bank Islam Malaysia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Islam Malaysia 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 Bank Islam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Islam Malaysia has no effect on the direction of Awanbiru Technology i.e., Awanbiru Technology and Bank Islam go up and down completely randomly.
Pair Corralation between Awanbiru Technology and Bank Islam
Assuming the 90 days trading horizon Awanbiru Technology Bhd is expected to generate 5.86 times more return on investment than Bank Islam. However, Awanbiru Technology is 5.86 times more volatile than Bank Islam Malaysia. It trades about 0.08 of its potential returns per unit of risk. Bank Islam Malaysia is currently generating about -0.02 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awanbiru Technology Bhd vs. Bank Islam Malaysia
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| Bank Islam Malaysia |
Awanbiru Technology and Bank Islam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and Bank Islam
The main advantage of trading using opposite Awanbiru Technology and Bank Islam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology position performs unexpectedly, Bank Islam 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 Bank Islam will offset losses from the drop in Bank Islam'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 |
| Bank Islam vs. SFP Tech Holdings | Bank Islam vs. Melewar Industrial Group | Bank Islam vs. K One Technology Bhd | Bank Islam vs. Farm Price Holdings |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |