Correlation Between Magni Tech and Dataprep Holdings
Can any of the company-specific risk be diversified away by investing in both Magni Tech and Dataprep Holdings 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 Magni Tech and Dataprep Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magni Tech Industries and Dataprep Holdings Bhd, you can compare the effects of market volatilities on Magni Tech and Dataprep Holdings 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 Magni Tech with a short position of Dataprep Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magni Tech and Dataprep Holdings.
Diversification Opportunities for Magni Tech and Dataprep Holdings
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Magni and Dataprep is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Magni Tech Industries and Dataprep Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataprep Holdings Bhd and Magni 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 Magni Tech Industries are associated (or correlated) with Dataprep Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataprep Holdings Bhd has no effect on the direction of Magni Tech i.e., Magni Tech and Dataprep Holdings go up and down completely randomly.
Pair Corralation between Magni Tech and Dataprep Holdings
If you would invest 14.00 in Dataprep Holdings Bhd on October 16, 2024 and sell it today you would earn a total of 0.00 from holding Dataprep Holdings 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 |
Magni Tech Industries vs. Dataprep Holdings Bhd
Performance |
| Timeline |
| Magni Tech Industries |
| Dataprep Holdings Bhd |
Magni Tech and Dataprep Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magni Tech and Dataprep Holdings
The main advantage of trading using opposite Magni Tech and Dataprep Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magni Tech position performs unexpectedly, Dataprep Holdings 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 Dataprep Holdings will offset losses from the drop in Dataprep Holdings' long position.| Magni Tech vs. PMB Technology Bhd | Magni Tech vs. ES Ceramics Technology | Magni Tech vs. Tex Cycle Technology | Magni Tech vs. Petronas Chemicals Group |
| Dataprep Holdings vs. Awanbiru Technology Bhd | Dataprep Holdings vs. Magni Tech Industries | Dataprep Holdings vs. IHH Healthcare Bhd | Dataprep Holdings vs. Lyc Healthcare 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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