Correlation Between Aurelius Technologies and Public Bank
Can any of the company-specific risk be diversified away by investing in both Aurelius Technologies and Public Bank 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 Aurelius Technologies and Public Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelius Technologies Bhd and Public Bank Bhd, you can compare the effects of market volatilities on Aurelius Technologies and Public Bank 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 Aurelius Technologies with a short position of Public Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelius Technologies and Public Bank.
Diversification Opportunities for Aurelius Technologies and Public Bank
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aurelius and Public is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Aurelius Technologies Bhd and Public Bank Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Bank Bhd and Aurelius Technologies 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 Aurelius Technologies Bhd are associated (or correlated) with Public Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Bank Bhd has no effect on the direction of Aurelius Technologies i.e., Aurelius Technologies and Public Bank go up and down completely randomly.
Pair Corralation between Aurelius Technologies and Public Bank
Assuming the 90 days trading horizon Aurelius Technologies Bhd is expected to generate 2.35 times more return on investment than Public Bank. However, Aurelius Technologies is 2.35 times more volatile than Public Bank Bhd. It trades about 0.03 of its potential returns per unit of risk. Public Bank Bhd is currently generating about 0.03 per unit of risk. If you would invest 259.00 in Aurelius Technologies Bhd on November 1, 2024 and sell it today you would earn a total of 53.00 from holding Aurelius Technologies Bhd or generate 20.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelius Technologies Bhd vs. Public Bank Bhd
Performance |
| Timeline |
| Aurelius Technologies Bhd |
| Public Bank Bhd |
Aurelius Technologies and Public Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelius Technologies and Public Bank
The main advantage of trading using opposite Aurelius Technologies and Public Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelius Technologies position performs unexpectedly, Public Bank 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 Public Bank will offset losses from the drop in Public Bank's long position.| Aurelius Technologies vs. CSC Steel Holdings | Aurelius Technologies vs. K One Technology Bhd | Aurelius Technologies vs. Diversified Gateway Solutions | Aurelius Technologies vs. CPE Technology Berhad |
| Public Bank vs. Resintech Bhd | Public Bank vs. Dufu Tech Corp | Public Bank vs. CSC Steel Holdings | Public Bank vs. Aurelius Technologies 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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