Correlation Between Choo Bee and Senheng New
Can any of the company-specific risk be diversified away by investing in both Choo Bee and Senheng New 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 Senheng New 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 Senheng New Retail, you can compare the effects of market volatilities on Choo Bee and Senheng New 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 Senheng New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choo Bee and Senheng New.
Diversification Opportunities for Choo Bee and Senheng New
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Choo and Senheng is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Choo Bee Metal and Senheng New Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senheng New Retail 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 Senheng New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senheng New Retail has no effect on the direction of Choo Bee i.e., Choo Bee and Senheng New go up and down completely randomly.
Pair Corralation between Choo Bee and Senheng New
Assuming the 90 days trading horizon Choo Bee Metal is expected to generate 0.45 times more return on investment than Senheng New. However, Choo Bee Metal is 2.24 times less risky than Senheng New. It trades about 0.01 of its potential returns per unit of risk. Senheng New Retail is currently generating about -0.1 per unit of risk. If you would invest 70.00 in Choo Bee Metal on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Choo Bee Metal or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Choo Bee Metal vs. Senheng New Retail
Performance |
| Timeline |
| Choo Bee Metal |
| Senheng New Retail |
Choo Bee and Senheng New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choo Bee and Senheng New
The main advantage of trading using opposite Choo Bee and Senheng New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choo Bee position performs unexpectedly, Senheng New 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 Senheng New will offset losses from the drop in Senheng New's long position.| Choo Bee vs. Greatech Technology Bhd | Choo Bee vs. Public Packages Holdings | Choo Bee vs. Cosmos Technology International | Choo Bee vs. Melewar Industrial Group |
| Senheng New vs. DC HEALTHCARE HOLDINGS | Senheng New vs. Choo Bee Metal | Senheng New vs. Awanbiru Technology Bhd | Senheng New vs. Eonmetall Group 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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