Correlation Between Datasonic Group and Choo Bee
Can any of the company-specific risk be diversified away by investing in both Datasonic Group and Choo Bee 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 Choo Bee 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 Choo Bee Metal, you can compare the effects of market volatilities on Datasonic Group and Choo Bee 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 Choo Bee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datasonic Group and Choo Bee.
Diversification Opportunities for Datasonic Group and Choo Bee
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Datasonic and Choo is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Datasonic Group Bhd and Choo Bee Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choo Bee Metal 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 Choo Bee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choo Bee Metal has no effect on the direction of Datasonic Group i.e., Datasonic Group and Choo Bee go up and down completely randomly.
Pair Corralation between Datasonic Group and Choo Bee
Assuming the 90 days trading horizon Datasonic Group Bhd is expected to under-perform the Choo Bee. In addition to that, Datasonic Group is 2.78 times more volatile than Choo Bee Metal. It trades about -0.21 of its total potential returns per unit of risk. Choo Bee Metal is currently generating about 0.13 per unit of volatility. If you would invest 70.00 in Choo Bee Metal on October 11, 2024 and sell it today you would earn a total of 1.00 from holding Choo Bee Metal or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Datasonic Group Bhd vs. Choo Bee Metal
Performance |
| Timeline |
| Datasonic Group Bhd |
| Choo Bee Metal |
Datasonic Group and Choo Bee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datasonic Group and Choo Bee
The main advantage of trading using opposite Datasonic Group and Choo Bee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datasonic Group position performs unexpectedly, Choo Bee 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 Choo Bee will offset losses from the drop in Choo Bee's long position.| Datasonic Group vs. Rubberex M | Datasonic Group vs. Hong Leong Bank | Datasonic Group vs. IHH Healthcare Bhd | Datasonic Group vs. YX Precious Metals |
| Choo Bee vs. Nova Wellness Group | Choo Bee vs. CB Industrial Product | Choo Bee vs. Binasat Communications Bhd | Choo Bee vs. Homeritz 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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