Correlation Between Choo Bee and Minetech Resources
Can any of the company-specific risk be diversified away by investing in both Choo Bee and Minetech Resources 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 Minetech Resources 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 Minetech Resources Bhd, you can compare the effects of market volatilities on Choo Bee and Minetech Resources 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 Minetech Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choo Bee and Minetech Resources.
Diversification Opportunities for Choo Bee and Minetech Resources
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Choo and Minetech is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Choo Bee Metal and Minetech Resources Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minetech Resources 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 Minetech Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minetech Resources Bhd has no effect on the direction of Choo Bee i.e., Choo Bee and Minetech Resources go up and down completely randomly.
Pair Corralation between Choo Bee and Minetech Resources
Assuming the 90 days trading horizon Choo Bee Metal is expected to generate 0.23 times more return on investment than Minetech Resources. However, Choo Bee Metal is 4.37 times less risky than Minetech Resources. It trades about 0.01 of its potential returns per unit of risk. Minetech Resources Bhd is currently generating about -0.24 per unit of risk. If you would invest 68.00 in Choo Bee Metal on November 28, 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Choo Bee Metal vs. Minetech Resources Bhd
Performance |
| Timeline |
| Choo Bee Metal |
| Minetech Resources Bhd |
Choo Bee and Minetech Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choo Bee and Minetech Resources
The main advantage of trading using opposite Choo Bee and Minetech Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choo Bee position performs unexpectedly, Minetech Resources 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 Minetech Resources will offset losses from the drop in Minetech Resources' long position.| Choo Bee vs. Impiana Hotels Bhd | Choo Bee vs. CSC Steel Holdings | Choo Bee vs. Leader Steel Holdings | Choo Bee vs. Al Aqar Healthcare |
| Minetech Resources vs. EA Technique M | Minetech Resources vs. Saudee Group Bhd | Minetech Resources vs. Digistar Bhd | Minetech Resources vs. AirAsia X 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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