Correlation Between Globetronics Tech and Datasonic Group
Can any of the company-specific risk be diversified away by investing in both Globetronics Tech and Datasonic Group 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 Globetronics Tech and Datasonic Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globetronics Tech Bhd and Datasonic Group Bhd, you can compare the effects of market volatilities on Globetronics Tech and Datasonic Group 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 Globetronics Tech with a short position of Datasonic Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globetronics Tech and Datasonic Group.
Diversification Opportunities for Globetronics Tech and Datasonic Group
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Globetronics and Datasonic is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Globetronics Tech Bhd and Datasonic Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datasonic Group Bhd and Globetronics 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 Globetronics Tech Bhd are associated (or correlated) with Datasonic Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datasonic Group Bhd has no effect on the direction of Globetronics Tech i.e., Globetronics Tech and Datasonic Group go up and down completely randomly.
Pair Corralation between Globetronics Tech and Datasonic Group
Assuming the 90 days trading horizon Globetronics Tech Bhd is expected to generate 1.61 times more return on investment than Datasonic Group. However, Globetronics Tech is 1.61 times more volatile than Datasonic Group Bhd. It trades about 0.1 of its potential returns per unit of risk. Datasonic Group Bhd is currently generating about 0.14 per unit of risk. If you would invest 53.00 in Globetronics Tech Bhd on September 13, 2024 and sell it today you would earn a total of 4.00 from holding Globetronics Tech Bhd or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globetronics Tech Bhd vs. Datasonic Group Bhd
Performance |
| Timeline |
| Globetronics Tech Bhd |
| Datasonic Group Bhd |
Globetronics Tech and Datasonic Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globetronics Tech and Datasonic Group
The main advantage of trading using opposite Globetronics Tech and Datasonic Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globetronics Tech position performs unexpectedly, Datasonic Group 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 Datasonic Group will offset losses from the drop in Datasonic Group's long position.| Globetronics Tech vs. Carlsberg Brewery Malaysia | Globetronics Tech vs. Diversified Gateway Solutions | Globetronics Tech vs. Dataprep Holdings Bhd | Globetronics Tech vs. Uchi Technologies Bhd |
| Datasonic Group vs. Lotte Chemical Titan | Datasonic Group vs. Oriental Food Industries | Datasonic Group vs. Binasat Communications Bhd | Datasonic Group vs. Uchi Technologies 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |