Correlation Between Aurelius Technologies and Petronas Chemicals
Can any of the company-specific risk be diversified away by investing in both Aurelius Technologies and Petronas Chemicals 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 Petronas Chemicals 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 Petronas Chemicals Group, you can compare the effects of market volatilities on Aurelius Technologies and Petronas Chemicals 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 Petronas Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelius Technologies and Petronas Chemicals.
Diversification Opportunities for Aurelius Technologies and Petronas Chemicals
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aurelius and Petronas is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Aurelius Technologies Bhd and Petronas Chemicals Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petronas Chemicals 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 Petronas Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petronas Chemicals has no effect on the direction of Aurelius Technologies i.e., Aurelius Technologies and Petronas Chemicals go up and down completely randomly.
Pair Corralation between Aurelius Technologies and Petronas Chemicals
Assuming the 90 days trading horizon Aurelius Technologies Bhd is expected to generate 1.02 times more return on investment than Petronas Chemicals. However, Aurelius Technologies is 1.02 times more volatile than Petronas Chemicals Group. It trades about -0.05 of its potential returns per unit of risk. Petronas Chemicals Group is currently generating about -0.13 per unit of risk. If you would invest 348.00 in Aurelius Technologies Bhd on September 1, 2024 and sell it today you would lose (51.00) from holding Aurelius Technologies Bhd or give up 14.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelius Technologies Bhd vs. Petronas Chemicals Group
Performance |
| Timeline |
| Aurelius Technologies Bhd |
| Petronas Chemicals |
Aurelius Technologies and Petronas Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelius Technologies and Petronas Chemicals
The main advantage of trading using opposite Aurelius Technologies and Petronas Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelius Technologies position performs unexpectedly, Petronas Chemicals 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 Petronas Chemicals will offset losses from the drop in Petronas Chemicals' long position.| Aurelius Technologies vs. Tex Cycle Technology | Aurelius Technologies vs. K One Technology Bhd | Aurelius Technologies vs. JF Technology BHD | Aurelius Technologies vs. CPE Technology Berhad |
| Petronas Chemicals vs. Choo Bee Metal | Petronas Chemicals vs. Melewar Industrial Group | Petronas Chemicals vs. Al Aqar Healthcare | Petronas Chemicals vs. K One Technology 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |