Correlation Between Bank Islam and Dataprep Holdings
Can any of the company-specific risk be diversified away by investing in both Bank Islam and Dataprep Holdings 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 Bank Islam and Dataprep Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Islam Malaysia and Dataprep Holdings Bhd, you can compare the effects of market volatilities on Bank Islam and Dataprep Holdings 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 Bank Islam with a short position of Dataprep Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Islam and Dataprep Holdings.
Diversification Opportunities for Bank Islam and Dataprep Holdings
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Dataprep is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bank Islam Malaysia and Dataprep Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataprep Holdings Bhd and Bank Islam 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 Bank Islam Malaysia are associated (or correlated) with Dataprep Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataprep Holdings Bhd has no effect on the direction of Bank Islam i.e., Bank Islam and Dataprep Holdings go up and down completely randomly.
Pair Corralation between Bank Islam and Dataprep Holdings
If you would invest 14.00 in Dataprep Holdings Bhd on October 17, 2024 and sell it today you would earn a total of 0.00 from holding Dataprep Holdings Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Islam Malaysia vs. Dataprep Holdings Bhd
Performance |
| Timeline |
| Bank Islam Malaysia |
| Dataprep Holdings Bhd |
Bank Islam and Dataprep Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Islam and Dataprep Holdings
The main advantage of trading using opposite Bank Islam and Dataprep Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Islam position performs unexpectedly, Dataprep Holdings 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 Dataprep Holdings will offset losses from the drop in Dataprep Holdings' long position.| Bank Islam vs. Malayan Banking Bhd | Bank Islam vs. Public Bank Bhd | Bank Islam vs. Petronas Chemicals Group | Bank Islam vs. Tenaga Nasional Bhd |
| Dataprep Holdings vs. Riverview Rubber Estates | Dataprep Holdings vs. Bank Islam Malaysia | Dataprep Holdings vs. Impiana Hotels Bhd | Dataprep Holdings vs. Sports Toto 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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