Correlation Between Choo Bee and MyTech Group
Can any of the company-specific risk be diversified away by investing in both Choo Bee 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 Choo Bee and MyTech 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 MyTech Group Bhd, you can compare the effects of market volatilities on Choo Bee 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 Choo Bee with a short position of MyTech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choo Bee and MyTech Group.
Diversification Opportunities for Choo Bee and MyTech Group
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Choo and MyTech is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Choo Bee Metal 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 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 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 Choo Bee i.e., Choo Bee and MyTech Group go up and down completely randomly.
Pair Corralation between Choo Bee and MyTech Group
Assuming the 90 days trading horizon Choo Bee Metal is expected to under-perform the MyTech Group. In addition to that, Choo Bee is 1.13 times more volatile than MyTech Group Bhd. It trades about -0.34 of its total potential returns per unit of risk. MyTech Group Bhd is currently generating about -0.36 per unit of volatility. If you would invest 44.00 in MyTech Group Bhd on September 3, 2024 and sell it today you would lose (6.00) from holding MyTech Group Bhd or give up 13.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Choo Bee Metal vs. MyTech Group Bhd
Performance |
| Timeline |
| Choo Bee Metal |
| MyTech Group Bhd |
Choo Bee and MyTech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choo Bee and MyTech Group
The main advantage of trading using opposite Choo Bee and MyTech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choo Bee 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.| Choo Bee vs. Media Prima Bhd | Choo Bee vs. Computer Forms Bhd | Choo Bee vs. Cloudpoint Technology Berhad | Choo Bee vs. Malaysia Steel Works |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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