Correlation Between Senheng New and TIME Dotcom
Can any of the company-specific risk be diversified away by investing in both Senheng New and TIME Dotcom 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 Senheng New and TIME Dotcom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senheng New Retail and TIME Dotcom Bhd, you can compare the effects of market volatilities on Senheng New and TIME Dotcom 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 Senheng New with a short position of TIME Dotcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senheng New and TIME Dotcom.
Diversification Opportunities for Senheng New and TIME Dotcom
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Senheng and TIME is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Senheng New Retail and TIME Dotcom Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIME Dotcom Bhd and Senheng New 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 Senheng New Retail are associated (or correlated) with TIME Dotcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIME Dotcom Bhd has no effect on the direction of Senheng New i.e., Senheng New and TIME Dotcom go up and down completely randomly.
Pair Corralation between Senheng New and TIME Dotcom
Assuming the 90 days trading horizon Senheng New Retail is expected to under-perform the TIME Dotcom. In addition to that, Senheng New is 2.66 times more volatile than TIME Dotcom Bhd. It trades about -0.04 of its total potential returns per unit of risk. TIME Dotcom Bhd is currently generating about 0.11 per unit of volatility. If you would invest 463.00 in TIME Dotcom Bhd on October 25, 2024 and sell it today you would earn a total of 12.00 from holding TIME Dotcom Bhd or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senheng New Retail vs. TIME Dotcom Bhd
Performance |
| Timeline |
| Senheng New Retail |
| TIME Dotcom Bhd |
Senheng New and TIME Dotcom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senheng New and TIME Dotcom
The main advantage of trading using opposite Senheng New and TIME Dotcom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senheng New position performs unexpectedly, TIME Dotcom 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 TIME Dotcom will offset losses from the drop in TIME Dotcom's long position.| Senheng New vs. Pantech Group Holdings | Senheng New vs. Supercomnet Technologies Bhd | Senheng New vs. MI Technovation Bhd | Senheng New vs. YX Precious Metals |
| TIME Dotcom vs. Daya Materials Bhd | TIME Dotcom vs. IHH Healthcare Bhd | TIME Dotcom vs. Senheng New Retail | TIME Dotcom vs. Riverview Rubber Estates |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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