Correlation Between PESTECH International and Pesona Metro
Can any of the company-specific risk be diversified away by investing in both PESTECH International and Pesona Metro 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 PESTECH International and Pesona Metro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PESTECH International Bhd and Pesona Metro Holdings, you can compare the effects of market volatilities on PESTECH International and Pesona Metro 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 PESTECH International with a short position of Pesona Metro. Check out your portfolio center. Please also check ongoing floating volatility patterns of PESTECH International and Pesona Metro.
Diversification Opportunities for PESTECH International and Pesona Metro
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PESTECH and Pesona is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding PESTECH International Bhd and Pesona Metro Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pesona Metro Holdings and PESTECH International 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 PESTECH International Bhd are associated (or correlated) with Pesona Metro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pesona Metro Holdings has no effect on the direction of PESTECH International i.e., PESTECH International and Pesona Metro go up and down completely randomly.
Pair Corralation between PESTECH International and Pesona Metro
If you would invest 24.00 in PESTECH International Bhd on November 30, 2024 and sell it today you would lose (6.00) from holding PESTECH International Bhd or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PESTECH International Bhd vs. Pesona Metro Holdings
Performance |
| Timeline |
| PESTECH International Bhd |
| Pesona Metro Holdings |
Risk-Adjusted Performance
Modest
Weak | Strong |
PESTECH International and Pesona Metro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PESTECH International and Pesona Metro
The main advantage of trading using opposite PESTECH International and Pesona Metro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PESTECH International position performs unexpectedly, Pesona Metro 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 Pesona Metro will offset losses from the drop in Pesona Metro's long position.| PESTECH International vs. Mercury Industries Bhd | PESTECH International vs. YX Precious Metals | PESTECH International vs. Diversified Gateway Solutions | PESTECH International vs. Shangri La Hotels |
| Pesona Metro vs. Press Metal Bhd | Pesona Metro vs. Datasonic Group Bhd | Pesona Metro vs. Privasia Technology Bhd | Pesona Metro vs. CPE Technology Berhad |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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