Correlation Between Crescendo Bhd and Malayan Banking
Can any of the company-specific risk be diversified away by investing in both Crescendo Bhd and Malayan Banking 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 Crescendo Bhd and Malayan Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crescendo Bhd and Malayan Banking Bhd, you can compare the effects of market volatilities on Crescendo Bhd and Malayan Banking 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 Crescendo Bhd with a short position of Malayan Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescendo Bhd and Malayan Banking.
Diversification Opportunities for Crescendo Bhd and Malayan Banking
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Crescendo and Malayan is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Crescendo Bhd and Malayan Banking Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malayan Banking Bhd and Crescendo Bhd 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 Crescendo Bhd are associated (or correlated) with Malayan Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malayan Banking Bhd has no effect on the direction of Crescendo Bhd i.e., Crescendo Bhd and Malayan Banking go up and down completely randomly.
Pair Corralation between Crescendo Bhd and Malayan Banking
Assuming the 90 days trading horizon Crescendo Bhd is expected to generate 4.83 times more return on investment than Malayan Banking. However, Crescendo Bhd is 4.83 times more volatile than Malayan Banking Bhd. It trades about 0.13 of its potential returns per unit of risk. Malayan Banking Bhd is currently generating about 0.1 per unit of risk. If you would invest 35.00 in Crescendo Bhd on September 13, 2024 and sell it today you would earn a total of 108.00 from holding Crescendo Bhd or generate 308.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.44% |
| Values | Daily Returns |
Crescendo Bhd vs. Malayan Banking Bhd
Performance |
| Timeline |
| Crescendo Bhd |
| Malayan Banking Bhd |
Crescendo Bhd and Malayan Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crescendo Bhd and Malayan Banking
The main advantage of trading using opposite Crescendo Bhd and Malayan Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crescendo Bhd position performs unexpectedly, Malayan Banking 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 Malayan Banking will offset losses from the drop in Malayan Banking's long position.| Crescendo Bhd vs. Malayan Banking Bhd | Crescendo Bhd vs. Public Bank Bhd | Crescendo Bhd vs. Petronas Chemicals Group | Crescendo Bhd vs. Tenaga Nasional Bhd |
| Malayan Banking vs. DC HEALTHCARE HOLDINGS | Malayan Banking vs. Eversafe Rubber Bhd | Malayan Banking vs. Binasat Communications Bhd | Malayan Banking vs. BP Plastics Holding |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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