Correlation Between QL Resources and PMB Technology
Can any of the company-specific risk be diversified away by investing in both QL Resources and PMB Technology 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 QL Resources and PMB Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QL Resources Bhd and PMB Technology Bhd, you can compare the effects of market volatilities on QL Resources and PMB Technology 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 QL Resources with a short position of PMB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of QL Resources and PMB Technology.
Diversification Opportunities for QL Resources and PMB Technology
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 7084 and PMB is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding QL Resources Bhd and PMB Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PMB Technology Bhd and QL Resources 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 QL Resources Bhd are associated (or correlated) with PMB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PMB Technology Bhd has no effect on the direction of QL Resources i.e., QL Resources and PMB Technology go up and down completely randomly.
Pair Corralation between QL Resources and PMB Technology
Assuming the 90 days trading horizon QL Resources Bhd is expected to generate 0.38 times more return on investment than PMB Technology. However, QL Resources Bhd is 2.6 times less risky than PMB Technology. It trades about 0.07 of its potential returns per unit of risk. PMB Technology Bhd is currently generating about -0.05 per unit of risk. If you would invest 361.00 in QL Resources Bhd on September 12, 2024 and sell it today you would earn a total of 121.00 from holding QL Resources Bhd or generate 33.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QL Resources Bhd vs. PMB Technology Bhd
Performance |
| Timeline |
| QL Resources Bhd |
| PMB Technology Bhd |
QL Resources and PMB Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QL Resources and PMB Technology
The main advantage of trading using opposite QL Resources and PMB Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QL Resources position performs unexpectedly, PMB Technology 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 PMB Technology will offset losses from the drop in PMB Technology's long position.| QL Resources vs. Digistar Bhd | QL Resources vs. Minetech Resources Bhd | QL Resources vs. Sunzen Biotech Bhd | QL Resources vs. ViTrox Bhd |
| PMB Technology vs. Press Metal Bhd | PMB Technology vs. Pantech Group Holdings | PMB Technology vs. CSC Steel Holdings | PMB Technology vs. Coraza Integrated Technology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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