Correlation Between Petronas Gas and Crescendo Bhd
Can any of the company-specific risk be diversified away by investing in both Petronas Gas and Crescendo Bhd 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 Petronas Gas and Crescendo Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petronas Gas Bhd and Crescendo Bhd, you can compare the effects of market volatilities on Petronas Gas and Crescendo Bhd 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 Petronas Gas with a short position of Crescendo Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petronas Gas and Crescendo Bhd.
Diversification Opportunities for Petronas Gas and Crescendo Bhd
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Petronas and Crescendo is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Petronas Gas Bhd and Crescendo Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescendo Bhd and Petronas Gas 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 Petronas Gas Bhd are associated (or correlated) with Crescendo Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescendo Bhd has no effect on the direction of Petronas Gas i.e., Petronas Gas and Crescendo Bhd go up and down completely randomly.
Pair Corralation between Petronas Gas and Crescendo Bhd
Assuming the 90 days trading horizon Petronas Gas is expected to generate 37.77 times less return on investment than Crescendo Bhd. But when comparing it to its historical volatility, Petronas Gas Bhd is 3.65 times less risky than Crescendo Bhd. It trades about 0.01 of its potential returns per unit of risk. Crescendo Bhd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 80.00 in Crescendo Bhd on December 4, 2024 and sell it today you would earn a total of 46.00 from holding Crescendo Bhd or generate 57.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Petronas Gas Bhd vs. Crescendo Bhd
Performance |
| Timeline |
| Petronas Gas Bhd |
| Crescendo Bhd |
Petronas Gas and Crescendo Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petronas Gas and Crescendo Bhd
The main advantage of trading using opposite Petronas Gas and Crescendo Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petronas Gas position performs unexpectedly, Crescendo Bhd 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 Crescendo Bhd will offset losses from the drop in Crescendo Bhd's long position.| Petronas Gas vs. Dataprep Holdings Bhd | Petronas Gas vs. BP Plastics Holding | Petronas Gas vs. YX Precious Metals | Petronas Gas vs. PIE Industrial Bhd |
| Crescendo Bhd vs. Riverview Rubber Estates | Crescendo Bhd vs. Press Metal Bhd | Crescendo Bhd vs. Eversafe Rubber Bhd | Crescendo Bhd vs. Uchi Technologies 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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