Correlation Between Choo Bee and PPB Group
Can any of the company-specific risk be diversified away by investing in both Choo Bee and PPB 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 Choo Bee and PPB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Choo Bee Metal and PPB Group Bhd, you can compare the effects of market volatilities on Choo Bee and PPB 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 Choo Bee with a short position of PPB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choo Bee and PPB Group.
Diversification Opportunities for Choo Bee and PPB Group
Poor diversification
The 3 months correlation between Choo and PPB is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Choo Bee Metal and PPB Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPB Group Bhd and Choo Bee 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 Choo Bee Metal are associated (or correlated) with PPB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPB Group Bhd has no effect on the direction of Choo Bee i.e., Choo Bee and PPB Group go up and down completely randomly.
Pair Corralation between Choo Bee and PPB Group
Assuming the 90 days trading horizon Choo Bee Metal is expected to generate 1.41 times more return on investment than PPB Group. However, Choo Bee is 1.41 times more volatile than PPB Group Bhd. It trades about -0.15 of its potential returns per unit of risk. PPB Group Bhd is currently generating about -0.33 per unit of risk. If you would invest 75.00 in Choo Bee Metal on September 12, 2024 and sell it today you would lose (5.00) from holding Choo Bee Metal or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Choo Bee Metal vs. PPB Group Bhd
Performance |
| Timeline |
| Choo Bee Metal |
| PPB Group Bhd |
Choo Bee and PPB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choo Bee and PPB Group
The main advantage of trading using opposite Choo Bee and PPB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choo Bee position performs unexpectedly, PPB 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 PPB Group will offset losses from the drop in PPB Group's long position.| Choo Bee vs. Press Metal Bhd | Choo Bee vs. PMB Technology Bhd | Choo Bee vs. Pantech Group Holdings | Choo Bee vs. CSC Steel Holdings |
| PPB Group vs. Nestle Bhd | PPB Group vs. British American Tobacco | PPB Group vs. FARM FRESH BERHAD | PPB Group vs. Kawan Food 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |