Correlation Between Awanbiru Technology and Senheng New
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology and Senheng New 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 Senheng New 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 Senheng New Retail, you can compare the effects of market volatilities on Awanbiru Technology and Senheng New 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 Senheng New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and Senheng New.
Diversification Opportunities for Awanbiru Technology and Senheng New
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Awanbiru and Senheng is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology Bhd and Senheng New Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senheng New Retail 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 Senheng New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senheng New Retail has no effect on the direction of Awanbiru Technology i.e., Awanbiru Technology and Senheng New go up and down completely randomly.
Pair Corralation between Awanbiru Technology and Senheng New
Assuming the 90 days trading horizon Awanbiru Technology Bhd is expected to generate 2.39 times more return on investment than Senheng New. However, Awanbiru Technology is 2.39 times more volatile than Senheng New Retail. It trades about 0.03 of its potential returns per unit of risk. Senheng New Retail is currently generating about -0.07 per unit of risk. If you would invest 40.00 in Awanbiru Technology Bhd on September 16, 2024 and sell it today you would lose (5.00) from holding Awanbiru Technology Bhd or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awanbiru Technology Bhd vs. Senheng New Retail
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| Senheng New Retail |
Awanbiru Technology and Senheng New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and Senheng New
The main advantage of trading using opposite Awanbiru Technology and Senheng New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology position performs unexpectedly, Senheng New 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 Senheng New will offset losses from the drop in Senheng New'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 |
| Senheng New vs. Apex Healthcare Bhd | Senheng New vs. Sports Toto Berhad | Senheng New vs. YX Precious Metals | Senheng New vs. Kawan Food 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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