Correlation Between Petronas Gas and PGF Capital
Can any of the company-specific risk be diversified away by investing in both Petronas Gas and PGF Capital 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 PGF Capital 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 PGF Capital Bhd, you can compare the effects of market volatilities on Petronas Gas and PGF Capital 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 PGF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petronas Gas and PGF Capital.
Diversification Opportunities for Petronas Gas and PGF Capital
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Petronas and PGF is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Petronas Gas Bhd and PGF Capital Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGF Capital 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 PGF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGF Capital Bhd has no effect on the direction of Petronas Gas i.e., Petronas Gas and PGF Capital go up and down completely randomly.
Pair Corralation between Petronas Gas and PGF Capital
Assuming the 90 days trading horizon Petronas Gas Bhd is expected to generate 0.16 times more return on investment than PGF Capital. However, Petronas Gas Bhd is 6.22 times less risky than PGF Capital. It trades about 0.27 of its potential returns per unit of risk. PGF Capital Bhd is currently generating about -0.04 per unit of risk. If you would invest 1,742 in Petronas Gas Bhd on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Petronas Gas Bhd or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petronas Gas Bhd vs. PGF Capital Bhd
Performance |
| Timeline |
| Petronas Gas Bhd |
| PGF Capital Bhd |
Petronas Gas and PGF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petronas Gas and PGF Capital
The main advantage of trading using opposite Petronas Gas and PGF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petronas Gas position performs unexpectedly, PGF Capital 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 PGF Capital will offset losses from the drop in PGF Capital's long position.| Petronas Gas vs. Choo Bee Metal | Petronas Gas vs. Computer Forms Bhd | Petronas Gas vs. Petronas Chemicals Group | Petronas Gas vs. Diversified Gateway Solutions |
| PGF Capital vs. EA Technique M | PGF Capital vs. PIE Industrial Bhd | PGF Capital vs. Cosmos Technology International | PGF Capital vs. Sunzen Biotech 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |