Correlation Between Datasonic Group and Cengild Medical
Can any of the company-specific risk be diversified away by investing in both Datasonic Group and Cengild Medical 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 Datasonic Group and Cengild Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Datasonic Group Bhd and Cengild Medical Berhad, you can compare the effects of market volatilities on Datasonic Group and Cengild Medical 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 Datasonic Group with a short position of Cengild Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datasonic Group and Cengild Medical.
Diversification Opportunities for Datasonic Group and Cengild Medical
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Datasonic and Cengild is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Datasonic Group Bhd and Cengild Medical Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cengild Medical Berhad and Datasonic Group 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 Datasonic Group Bhd are associated (or correlated) with Cengild Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cengild Medical Berhad has no effect on the direction of Datasonic Group i.e., Datasonic Group and Cengild Medical go up and down completely randomly.
Pair Corralation between Datasonic Group and Cengild Medical
Assuming the 90 days trading horizon Datasonic Group Bhd is expected to generate 0.74 times more return on investment than Cengild Medical. However, Datasonic Group Bhd is 1.34 times less risky than Cengild Medical. It trades about 0.0 of its potential returns per unit of risk. Cengild Medical Berhad is currently generating about -0.02 per unit of risk. If you would invest 41.00 in Datasonic Group Bhd on August 31, 2024 and sell it today you would lose (1.00) from holding Datasonic Group Bhd or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datasonic Group Bhd vs. Cengild Medical Berhad
Performance |
| Timeline |
| Datasonic Group Bhd |
| Cengild Medical Berhad |
Datasonic Group and Cengild Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datasonic Group and Cengild Medical
The main advantage of trading using opposite Datasonic Group and Cengild Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datasonic Group position performs unexpectedly, Cengild Medical 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 Cengild Medical will offset losses from the drop in Cengild Medical's long position.| Datasonic Group vs. Binasat Communications Bhd | Datasonic Group vs. PMB Technology Bhd | Datasonic Group vs. Sports Toto Berhad | Datasonic Group vs. Apollo Food Holdings |
| Cengild Medical vs. Senheng New Retail | Cengild Medical vs. CSC Steel Holdings | Cengild Medical vs. Sports Toto Berhad | Cengild Medical vs. Star Media Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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