Correlation Between Awanbiru Technology and Leader Steel
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology and Leader Steel 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 Leader Steel 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 Leader Steel Holdings, you can compare the effects of market volatilities on Awanbiru Technology and Leader Steel 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 Leader Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and Leader Steel.
Diversification Opportunities for Awanbiru Technology and Leader Steel
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Awanbiru and Leader is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology Bhd and Leader Steel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leader Steel Holdings 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 Leader Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leader Steel Holdings has no effect on the direction of Awanbiru Technology i.e., Awanbiru Technology and Leader Steel go up and down completely randomly.
Pair Corralation between Awanbiru Technology and Leader Steel
Assuming the 90 days trading horizon Awanbiru Technology Bhd is expected to under-perform the Leader Steel. But the stock apears to be less risky and, when comparing its historical volatility, Awanbiru Technology Bhd is 1.08 times less risky than Leader Steel. The stock trades about -0.12 of its potential returns per unit of risk. The Leader Steel Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 46.00 in Leader Steel Holdings on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Leader Steel Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Awanbiru Technology Bhd vs. Leader Steel Holdings
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| Leader Steel Holdings |
Awanbiru Technology and Leader Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and Leader Steel
The main advantage of trading using opposite Awanbiru Technology and Leader Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology position performs unexpectedly, Leader Steel 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 Leader Steel will offset losses from the drop in Leader Steel'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 |
| Leader Steel vs. Press Metal Bhd | Leader Steel vs. PMB Technology Bhd | Leader Steel vs. Pantech Group Holdings | Leader Steel vs. CSC Steel 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |