Correlation Between Senheng New and MyTech Group
Can any of the company-specific risk be diversified away by investing in both Senheng New 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 Senheng New and MyTech Group 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 MyTech Group Bhd, you can compare the effects of market volatilities on Senheng New 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 Senheng New with a short position of MyTech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senheng New and MyTech Group.
Diversification Opportunities for Senheng New and MyTech Group
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Senheng and MyTech is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Senheng New Retail 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 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 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 Senheng New i.e., Senheng New and MyTech Group go up and down completely randomly.
Pair Corralation between Senheng New and MyTech Group
Assuming the 90 days trading horizon Senheng New Retail is expected to under-perform the MyTech Group. But the stock apears to be less risky and, when comparing its historical volatility, Senheng New Retail is 1.69 times less risky than MyTech Group. The stock trades about -0.06 of its potential returns per unit of risk. The MyTech Group Bhd is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 53.00 in MyTech Group Bhd on September 3, 2024 and sell it today you would lose (15.00) from holding MyTech Group Bhd or give up 28.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senheng New Retail vs. MyTech Group Bhd
Performance |
| Timeline |
| Senheng New Retail |
| MyTech Group Bhd |
Senheng New and MyTech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senheng New and MyTech Group
The main advantage of trading using opposite Senheng New and MyTech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senheng New 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.| Senheng New vs. Mr D I | Senheng New vs. Radiant Globaltech Bhd | Senheng New vs. Minetech Resources Bhd | Senheng New vs. Swift Haulage Bhd |
| MyTech Group vs. Greatech Technology Bhd | MyTech Group vs. Genetec Technology Bhd | MyTech Group vs. PIE Industrial Bhd | MyTech Group vs. Dufu Tech Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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