Correlation Between Awanbiru Technology and Kobay Tech
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology and Kobay Tech 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 Kobay Tech 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 Kobay Tech Bhd, you can compare the effects of market volatilities on Awanbiru Technology and Kobay Tech 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 Kobay Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and Kobay Tech.
Diversification Opportunities for Awanbiru Technology and Kobay Tech
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Awanbiru and Kobay is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology Bhd and Kobay Tech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kobay Tech 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 Kobay Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kobay Tech Bhd has no effect on the direction of Awanbiru Technology i.e., Awanbiru Technology and Kobay Tech go up and down completely randomly.
Pair Corralation between Awanbiru Technology and Kobay Tech
Assuming the 90 days trading horizon Awanbiru Technology Bhd is expected to generate 1.71 times more return on investment than Kobay Tech. However, Awanbiru Technology is 1.71 times more volatile than Kobay Tech Bhd. It trades about 0.09 of its potential returns per unit of risk. Kobay Tech Bhd is currently generating about -0.22 per unit of risk. If you would invest 32.00 in Awanbiru Technology Bhd on November 2, 2024 and sell it today you would earn a total of 2.00 from holding Awanbiru Technology Bhd or generate 6.25% 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. Kobay Tech Bhd
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| Kobay Tech Bhd |
Awanbiru Technology and Kobay Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and Kobay Tech
The main advantage of trading using opposite Awanbiru Technology and Kobay Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology position performs unexpectedly, Kobay Tech 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 Kobay Tech will offset losses from the drop in Kobay Tech'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 |
| Kobay Tech vs. Mycron Steel Bhd | Kobay Tech vs. Diversified Gateway Solutions | Kobay Tech vs. British American Tobacco | Kobay Tech vs. Shangri La Hotels |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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