Correlation Between Choo Bee and Public Packages
Can any of the company-specific risk be diversified away by investing in both Choo Bee and Public Packages 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 Public Packages 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 Public Packages Holdings, you can compare the effects of market volatilities on Choo Bee and Public Packages 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 Public Packages. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choo Bee and Public Packages.
Diversification Opportunities for Choo Bee and Public Packages
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Choo and Public is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Choo Bee Metal and Public Packages Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Packages Holdings 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 Public Packages. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Packages Holdings has no effect on the direction of Choo Bee i.e., Choo Bee and Public Packages go up and down completely randomly.
Pair Corralation between Choo Bee and Public Packages
Assuming the 90 days trading horizon Choo Bee Metal is expected to under-perform the Public Packages. But the stock apears to be less risky and, when comparing its historical volatility, Choo Bee Metal is 1.05 times less risky than Public Packages. The stock trades about -0.02 of its potential returns per unit of risk. The Public Packages Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 62.00 in Public Packages Holdings on September 16, 2024 and sell it today you would earn a total of 22.00 from holding Public Packages Holdings or generate 35.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Choo Bee Metal vs. Public Packages Holdings
Performance |
| Timeline |
| Choo Bee Metal |
| Public Packages Holdings |
Choo Bee and Public Packages Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choo Bee and Public Packages
The main advantage of trading using opposite Choo Bee and Public Packages positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choo Bee position performs unexpectedly, Public Packages 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 Public Packages will offset losses from the drop in Public Packages' 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 |
| Public Packages vs. Malayan Banking Bhd | Public Packages vs. Public Bank Bhd | Public Packages vs. Petronas Chemicals Group | Public Packages vs. Tenaga Nasional 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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