Correlation Between EA Technique and Computer Forms
Can any of the company-specific risk be diversified away by investing in both EA Technique and Computer Forms 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 EA Technique and Computer Forms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Technique M and Computer Forms Bhd, you can compare the effects of market volatilities on EA Technique and Computer Forms 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 EA Technique with a short position of Computer Forms. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Technique and Computer Forms.
Diversification Opportunities for EA Technique and Computer Forms
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 5259 and Computer is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding EA Technique M and Computer Forms Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Forms Bhd and EA Technique 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 EA Technique M are associated (or correlated) with Computer Forms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Forms Bhd has no effect on the direction of EA Technique i.e., EA Technique and Computer Forms go up and down completely randomly.
Pair Corralation between EA Technique and Computer Forms
Assuming the 90 days trading horizon EA Technique M is expected to generate 1.07 times more return on investment than Computer Forms. However, EA Technique is 1.07 times more volatile than Computer Forms Bhd. It trades about 0.06 of its potential returns per unit of risk. Computer Forms Bhd is currently generating about -0.01 per unit of risk. If you would invest 16.00 in EA Technique M on August 31, 2024 and sell it today you would earn a total of 14.00 from holding EA Technique M or generate 87.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
EA Technique M vs. Computer Forms Bhd
Performance |
| Timeline |
| EA Technique M |
| Computer Forms Bhd |
EA Technique and Computer Forms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Technique and Computer Forms
The main advantage of trading using opposite EA Technique and Computer Forms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Technique position performs unexpectedly, Computer Forms 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 Computer Forms will offset losses from the drop in Computer Forms' long position.| EA Technique vs. Digistar Bhd | EA Technique vs. Minetech Resources Bhd | EA Technique vs. Swift Haulage Bhd | EA Technique vs. Bina Darulaman Bhd |
| Computer Forms vs. MClean Technologies Bhd | Computer Forms vs. Digistar Bhd | Computer Forms vs. Minetech Resources Bhd | Computer Forms vs. Swift Haulage 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |