Correlation Between Datasonic Group and PMB Technology
Can any of the company-specific risk be diversified away by investing in both Datasonic Group and PMB Technology 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 PMB Technology 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 PMB Technology Bhd, you can compare the effects of market volatilities on Datasonic Group and PMB Technology 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 PMB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datasonic Group and PMB Technology.
Diversification Opportunities for Datasonic Group and PMB Technology
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Datasonic and PMB is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Datasonic Group Bhd and PMB Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PMB Technology Bhd 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 PMB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PMB Technology Bhd has no effect on the direction of Datasonic Group i.e., Datasonic Group and PMB Technology go up and down completely randomly.
Pair Corralation between Datasonic Group and PMB Technology
Assuming the 90 days trading horizon Datasonic Group Bhd is expected to generate 0.74 times more return on investment than PMB Technology. However, Datasonic Group Bhd is 1.36 times less risky than PMB Technology. It trades about 0.01 of its potential returns per unit of risk. PMB Technology Bhd is currently generating about -0.07 per unit of risk. If you would invest 41.00 in Datasonic Group Bhd on November 8, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datasonic Group Bhd vs. PMB Technology Bhd
Performance |
| Timeline |
| Datasonic Group Bhd |
| PMB Technology Bhd |
Datasonic Group and PMB Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datasonic Group and PMB Technology
The main advantage of trading using opposite Datasonic Group and PMB Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datasonic Group position performs unexpectedly, PMB Technology 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 PMB Technology will offset losses from the drop in PMB Technology's long position.| Datasonic Group vs. Dataprep Holdings Bhd | Datasonic Group vs. Sports Toto Berhad | Datasonic Group vs. Binasat Communications Bhd | Datasonic Group vs. Homeritz Bhd |
| PMB Technology vs. CPE Technology Berhad | PMB Technology vs. SSF Home Group | PMB Technology vs. Lyc Healthcare Bhd | PMB Technology vs. KPJ Healthcare 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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