Correlation Between Bina Darulaman and Computer Forms
Can any of the company-specific risk be diversified away by investing in both Bina Darulaman and Computer Forms 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 Computer Forms 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 Computer Forms Bhd, you can compare the effects of market volatilities on Bina Darulaman and Computer Forms 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 Computer Forms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bina Darulaman and Computer Forms.
Diversification Opportunities for Bina Darulaman and Computer Forms
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bina and Computer is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bina Darulaman Bhd and Computer Forms Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Forms 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 Computer Forms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Forms Bhd has no effect on the direction of Bina Darulaman i.e., Bina Darulaman and Computer Forms go up and down completely randomly.
Pair Corralation between Bina Darulaman and Computer Forms
Assuming the 90 days trading horizon Bina Darulaman Bhd is expected to under-perform the Computer Forms. But the stock apears to be less risky and, when comparing its historical volatility, Bina Darulaman Bhd is 1.43 times less risky than Computer Forms. The stock trades about -0.07 of its potential returns per unit of risk. The Computer Forms Bhd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Computer Forms Bhd on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Computer Forms Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bina Darulaman Bhd vs. Computer Forms Bhd
Performance |
| Timeline |
| Bina Darulaman Bhd |
| Computer Forms Bhd |
Bina Darulaman and Computer Forms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bina Darulaman and Computer Forms
The main advantage of trading using opposite Bina Darulaman and Computer Forms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bina Darulaman position performs unexpectedly, Computer Forms 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 Computer Forms will offset losses from the drop in Computer Forms' long position.| Bina Darulaman vs. British American Tobacco | Bina Darulaman vs. Shangri La Hotels | Bina Darulaman vs. Farm Price Holdings | Bina Darulaman vs. CSC Steel Holdings |
| Computer Forms vs. ES Ceramics Technology | Computer Forms vs. Uchi Technologies Bhd | Computer Forms vs. Globetronics Tech Bhd | Computer Forms vs. Shangri La Hotels |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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