Correlation Between Bina Darulaman and Aurelius Technologies
Can any of the company-specific risk be diversified away by investing in both Bina Darulaman and Aurelius Technologies 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 Bina Darulaman and Aurelius Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bina Darulaman Bhd and Aurelius Technologies Bhd, you can compare the effects of market volatilities on Bina Darulaman and Aurelius Technologies 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 Bina Darulaman with a short position of Aurelius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bina Darulaman and Aurelius Technologies.
Diversification Opportunities for Bina Darulaman and Aurelius Technologies
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bina and Aurelius is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bina Darulaman Bhd and Aurelius Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelius Technologies Bhd and Bina Darulaman 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 Bina Darulaman Bhd are associated (or correlated) with Aurelius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelius Technologies Bhd has no effect on the direction of Bina Darulaman i.e., Bina Darulaman and Aurelius Technologies go up and down completely randomly.
Pair Corralation between Bina Darulaman and Aurelius Technologies
Assuming the 90 days trading horizon Bina Darulaman is expected to generate 2.21 times less return on investment than Aurelius Technologies. In addition to that, Bina Darulaman is 1.23 times more volatile than Aurelius Technologies Bhd. It trades about 0.02 of its total potential returns per unit of risk. Aurelius Technologies Bhd is currently generating about 0.05 per unit of volatility. If you would invest 188.00 in Aurelius Technologies Bhd on September 4, 2024 and sell it today you would earn a total of 110.00 from holding Aurelius Technologies Bhd or generate 58.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.35% |
| Values | Daily Returns |
Bina Darulaman Bhd vs. Aurelius Technologies Bhd
Performance |
| Timeline |
| Bina Darulaman Bhd |
| Aurelius Technologies Bhd |
Bina Darulaman and Aurelius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bina Darulaman and Aurelius Technologies
The main advantage of trading using opposite Bina Darulaman and Aurelius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bina Darulaman position performs unexpectedly, Aurelius Technologies 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 Aurelius Technologies will offset losses from the drop in Aurelius Technologies' long position.| Bina Darulaman vs. Malayan Banking Bhd | Bina Darulaman vs. Public Bank Bhd | Bina Darulaman vs. Petronas Chemicals Group | Bina Darulaman vs. Tenaga Nasional Bhd |
| Aurelius Technologies vs. Kobay Tech Bhd | Aurelius Technologies vs. Sunzen Biotech Bhd | Aurelius Technologies vs. Homeritz Bhd | Aurelius Technologies vs. Mycron Steel 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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