Correlation Between MI Technovation and PGF Capital
Can any of the company-specific risk be diversified away by investing in both MI Technovation and PGF Capital 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 PGF Capital 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 PGF Capital Bhd, you can compare the effects of market volatilities on MI Technovation and PGF Capital 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 PGF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of MI Technovation and PGF Capital.
Diversification Opportunities for MI Technovation and PGF Capital
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 5286 and PGF is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding MI Technovation Bhd and PGF Capital Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGF Capital 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 PGF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGF Capital Bhd has no effect on the direction of MI Technovation i.e., MI Technovation and PGF Capital go up and down completely randomly.
Pair Corralation between MI Technovation and PGF Capital
Assuming the 90 days trading horizon MI Technovation Bhd is expected to generate 1.25 times more return on investment than PGF Capital. However, MI Technovation is 1.25 times more volatile than PGF Capital Bhd. It trades about 0.06 of its potential returns per unit of risk. PGF Capital Bhd is currently generating about 0.07 per unit of risk. If you would invest 123.00 in MI Technovation Bhd on September 14, 2024 and sell it today you would earn a total of 98.00 from holding MI Technovation Bhd or generate 79.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.17% |
| Values | Daily Returns |
MI Technovation Bhd vs. PGF Capital Bhd
Performance |
| Timeline |
| MI Technovation Bhd |
| PGF Capital Bhd |
MI Technovation and PGF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MI Technovation and PGF Capital
The main advantage of trading using opposite MI Technovation and PGF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MI Technovation position performs unexpectedly, PGF Capital 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 PGF Capital will offset losses from the drop in PGF Capital'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 |
| PGF Capital vs. Globetronics Tech Bhd | PGF Capital vs. MI Technovation Bhd | PGF Capital vs. JF Technology BHD | PGF Capital vs. EA Technique M |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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