Correlation Between MI Technovation and AMMB Holdings
Can any of the company-specific risk be diversified away by investing in both MI Technovation and AMMB 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 MI Technovation and AMMB Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MI Technovation Bhd and AMMB Holdings Bhd, you can compare the effects of market volatilities on MI Technovation and AMMB 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 MI Technovation with a short position of AMMB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MI Technovation and AMMB Holdings.
Diversification Opportunities for MI Technovation and AMMB Holdings
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 5286 and AMMB is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding MI Technovation Bhd and AMMB Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMMB Holdings Bhd and MI Technovation 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 MI Technovation Bhd are associated (or correlated) with AMMB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMMB Holdings Bhd has no effect on the direction of MI Technovation i.e., MI Technovation and AMMB Holdings go up and down completely randomly.
Pair Corralation between MI Technovation and AMMB Holdings
Assuming the 90 days trading horizon MI Technovation Bhd is expected to generate 1.81 times more return on investment than AMMB Holdings. However, MI Technovation is 1.81 times more volatile than AMMB Holdings Bhd. It trades about 0.21 of its potential returns per unit of risk. AMMB Holdings Bhd is currently generating about 0.18 per unit of risk. If you would invest 185.00 in MI Technovation Bhd on September 2, 2024 and sell it today you would earn a total of 25.00 from holding MI Technovation Bhd or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MI Technovation Bhd vs. AMMB Holdings Bhd
Performance |
| Timeline |
| MI Technovation Bhd |
| AMMB Holdings Bhd |
MI Technovation and AMMB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MI Technovation and AMMB Holdings
The main advantage of trading using opposite MI Technovation and AMMB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MI Technovation position performs unexpectedly, AMMB 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 AMMB Holdings will offset losses from the drop in AMMB Holdings' long position.| MI Technovation vs. Computer Forms Bhd | MI Technovation vs. Senheng New Retail | MI Technovation vs. YX Precious Metals | MI Technovation vs. Diversified Gateway Solutions |
| AMMB Holdings vs. Lyc Healthcare Bhd | AMMB Holdings vs. Pantech Group Holdings | AMMB Holdings vs. ONETECH SOLUTIONS HOLDINGS | AMMB Holdings vs. Kobay Tech 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |