Correlation Between Kobay Tech and Aurelius Technologies
Can any of the company-specific risk be diversified away by investing in both Kobay Tech 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 Kobay Tech and Aurelius Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kobay Tech Bhd and Aurelius Technologies Bhd, you can compare the effects of market volatilities on Kobay Tech 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 Kobay Tech with a short position of Aurelius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kobay Tech and Aurelius Technologies.
Diversification Opportunities for Kobay Tech and Aurelius Technologies
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kobay and Aurelius is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kobay Tech 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 Kobay Tech 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 Kobay Tech 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 Kobay Tech i.e., Kobay Tech and Aurelius Technologies go up and down completely randomly.
Pair Corralation between Kobay Tech and Aurelius Technologies
Assuming the 90 days trading horizon Kobay Tech Bhd is expected to generate 2.65 times more return on investment than Aurelius Technologies. However, Kobay Tech is 2.65 times more volatile than Aurelius Technologies Bhd. It trades about 0.2 of its potential returns per unit of risk. Aurelius Technologies Bhd is currently generating about 0.1 per unit of risk. If you would invest 131.00 in Kobay Tech Bhd on September 12, 2024 and sell it today you would earn a total of 21.00 from holding Kobay Tech Bhd or generate 16.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kobay Tech Bhd vs. Aurelius Technologies Bhd
Performance |
| Timeline |
| Kobay Tech Bhd |
| Aurelius Technologies Bhd |
Kobay Tech and Aurelius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kobay Tech and Aurelius Technologies
The main advantage of trading using opposite Kobay Tech and Aurelius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kobay Tech 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.| Kobay Tech vs. PIE Industrial Bhd | Kobay Tech vs. JF Technology BHD | Kobay Tech vs. CB Industrial Product | Kobay Tech vs. MyTech Group Bhd |
| Aurelius Technologies vs. MI Technovation Bhd | Aurelius Technologies vs. Globetronics Tech Bhd | Aurelius Technologies vs. Al Aqar Healthcare | Aurelius Technologies vs. PMB Technology 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |