Correlation Between Uwc Bhd and MyTech Group
Can any of the company-specific risk be diversified away by investing in both Uwc Bhd and MyTech Group 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 Uwc Bhd and MyTech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uwc Bhd and MyTech Group Bhd, you can compare the effects of market volatilities on Uwc Bhd and MyTech Group 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 Uwc Bhd with a short position of MyTech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uwc Bhd and MyTech Group.
Diversification Opportunities for Uwc Bhd and MyTech Group
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Uwc and MyTech is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Uwc Bhd and MyTech Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyTech Group Bhd and Uwc Bhd 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 Uwc Bhd are associated (or correlated) with MyTech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyTech Group Bhd has no effect on the direction of Uwc Bhd i.e., Uwc Bhd and MyTech Group go up and down completely randomly.
Pair Corralation between Uwc Bhd and MyTech Group
Assuming the 90 days trading horizon Uwc Bhd is expected to generate 1.89 times more return on investment than MyTech Group. However, Uwc Bhd is 1.89 times more volatile than MyTech Group Bhd. It trades about 0.34 of its potential returns per unit of risk. MyTech Group Bhd is currently generating about -0.12 per unit of risk. If you would invest 214.00 in Uwc Bhd on August 24, 2024 and sell it today you would earn a total of 55.00 from holding Uwc Bhd or generate 25.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Uwc Bhd vs. MyTech Group Bhd
Performance |
| Timeline |
| Uwc Bhd |
| MyTech Group Bhd |
Uwc Bhd and MyTech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uwc Bhd and MyTech Group
The main advantage of trading using opposite Uwc Bhd and MyTech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uwc Bhd position performs unexpectedly, MyTech Group 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 MyTech Group will offset losses from the drop in MyTech Group's long position.| Uwc Bhd vs. Senheng New Retail | Uwc Bhd vs. BP Plastics Holding | Uwc Bhd vs. Star Media Group | Uwc Bhd vs. Eversafe Rubber Bhd |
| MyTech Group vs. Greatech Technology Bhd | MyTech Group vs. Uwc Bhd | MyTech Group vs. Genetec Technology Bhd | MyTech Group vs. PIE Industrial 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..
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