Correlation Between EA Technique and Pesona Metro
Can any of the company-specific risk be diversified away by investing in both EA Technique 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 EA Technique and Pesona Metro 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 Pesona Metro Holdings, you can compare the effects of market volatilities on EA Technique 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 EA Technique with a short position of Pesona Metro. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Technique and Pesona Metro.
Diversification Opportunities for EA Technique and Pesona Metro
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 5259 and Pesona is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding EA Technique M 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 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 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 EA Technique i.e., EA Technique and Pesona Metro go up and down completely randomly.
Pair Corralation between EA Technique and Pesona Metro
Assuming the 90 days trading horizon EA Technique M is expected to generate 1.55 times more return on investment than Pesona Metro. However, EA Technique is 1.55 times more volatile than Pesona Metro Holdings. It trades about 0.06 of its potential returns per unit of risk. Pesona Metro Holdings is currently generating about 0.06 per unit of risk. If you would invest 16.00 in EA Technique M on September 1, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EA Technique M vs. Pesona Metro Holdings
Performance |
| Timeline |
| EA Technique M |
| Pesona Metro Holdings |
EA Technique and Pesona Metro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Technique and Pesona Metro
The main advantage of trading using opposite EA Technique and Pesona Metro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Technique 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.| EA Technique vs. Kobay Tech Bhd | EA Technique vs. CPE Technology Berhad | EA Technique vs. Star Media Group | EA Technique vs. Resintech Bhd |
| Pesona Metro vs. Sunway Construction Group | Pesona Metro vs. JAKS Resources Bhd | Pesona Metro vs. PESTECH International Bhd | Pesona Metro vs. Tadmax Resources 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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