Correlation Between Choo Bee and Telekom Malaysia
Can any of the company-specific risk be diversified away by investing in both Choo Bee and Telekom Malaysia 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 Telekom Malaysia 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 Telekom Malaysia Bhd, you can compare the effects of market volatilities on Choo Bee and Telekom Malaysia 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 Telekom Malaysia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choo Bee and Telekom Malaysia.
Diversification Opportunities for Choo Bee and Telekom Malaysia
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Choo and Telekom is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Choo Bee Metal and Telekom Malaysia Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telekom Malaysia 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 Telekom Malaysia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telekom Malaysia Bhd has no effect on the direction of Choo Bee i.e., Choo Bee and Telekom Malaysia go up and down completely randomly.
Pair Corralation between Choo Bee and Telekom Malaysia
Assuming the 90 days trading horizon Choo Bee Metal is expected to under-perform the Telekom Malaysia. In addition to that, Choo Bee is 2.1 times more volatile than Telekom Malaysia Bhd. It trades about -0.15 of its total potential returns per unit of risk. Telekom Malaysia Bhd is currently generating about 0.0 per unit of volatility. If you would invest 652.00 in Telekom Malaysia Bhd on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Telekom Malaysia Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Choo Bee Metal vs. Telekom Malaysia Bhd
Performance |
| Timeline |
| Choo Bee Metal |
| Telekom Malaysia Bhd |
Choo Bee and Telekom Malaysia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choo Bee and Telekom Malaysia
The main advantage of trading using opposite Choo Bee and Telekom Malaysia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choo Bee position performs unexpectedly, Telekom Malaysia 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 Telekom Malaysia will offset losses from the drop in Telekom Malaysia'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 |
| Telekom Malaysia vs. Sports Toto Berhad | Telekom Malaysia vs. TAS Offshore Bhd | Telekom Malaysia vs. Uchi Technologies Bhd | Telekom Malaysia vs. Choo Bee Metal |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| 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 | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |