Correlation Between MI Technovation and Al Aqar
Can any of the company-specific risk be diversified away by investing in both MI Technovation and Al Aqar 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 Al Aqar 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 Al Aqar Healthcare, you can compare the effects of market volatilities on MI Technovation and Al Aqar 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 Al Aqar. Check out your portfolio center. Please also check ongoing floating volatility patterns of MI Technovation and Al Aqar.
Diversification Opportunities for MI Technovation and Al Aqar
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 5286 and 5116 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding MI Technovation Bhd and Al Aqar Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Aqar Healthcare 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 Al Aqar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Aqar Healthcare has no effect on the direction of MI Technovation i.e., MI Technovation and Al Aqar go up and down completely randomly.
Pair Corralation between MI Technovation and Al Aqar
Assuming the 90 days trading horizon MI Technovation Bhd is expected to generate 2.91 times more return on investment than Al Aqar. However, MI Technovation is 2.91 times more volatile than Al Aqar Healthcare. It trades about 0.05 of its potential returns per unit of risk. Al Aqar Healthcare is currently generating about 0.07 per unit of risk. If you would invest 172.00 in MI Technovation Bhd on September 12, 2024 and sell it today you would earn a total of 48.00 from holding MI Technovation Bhd or generate 27.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MI Technovation Bhd vs. Al Aqar Healthcare
Performance |
| Timeline |
| MI Technovation Bhd |
| Al Aqar Healthcare |
MI Technovation and Al Aqar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MI Technovation and Al Aqar
The main advantage of trading using opposite MI Technovation and Al Aqar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MI Technovation position performs unexpectedly, Al Aqar 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 Al Aqar will offset losses from the drop in Al Aqar's long position.| MI Technovation vs. Globetronics Tech Bhd | MI Technovation vs. Al Aqar Healthcare | MI Technovation vs. PMB Technology Bhd | MI Technovation vs. Digistar Bhd |
| Al Aqar vs. PMB Technology Bhd | Al Aqar vs. Tex Cycle Technology | Al Aqar vs. Cosmos Technology International | Al Aqar vs. YX Precious Metals |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |