Correlation Between PIE Industrial and Supercomnet Technologies
Can any of the company-specific risk be diversified away by investing in both PIE Industrial and Supercomnet 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 PIE Industrial and Supercomnet Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PIE Industrial Bhd and Supercomnet Technologies Bhd, you can compare the effects of market volatilities on PIE Industrial and Supercomnet 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 PIE Industrial with a short position of Supercomnet Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of PIE Industrial and Supercomnet Technologies.
Diversification Opportunities for PIE Industrial and Supercomnet Technologies
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PIE and Supercomnet is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding PIE Industrial Bhd and Supercomnet Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercomnet Technologies and PIE Industrial 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 PIE Industrial Bhd are associated (or correlated) with Supercomnet Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercomnet Technologies has no effect on the direction of PIE Industrial i.e., PIE Industrial and Supercomnet Technologies go up and down completely randomly.
Pair Corralation between PIE Industrial and Supercomnet Technologies
Assuming the 90 days trading horizon PIE Industrial Bhd is expected to under-perform the Supercomnet Technologies. In addition to that, PIE Industrial is 1.76 times more volatile than Supercomnet Technologies Bhd. It trades about -0.24 of its total potential returns per unit of risk. Supercomnet Technologies Bhd is currently generating about -0.23 per unit of volatility. If you would invest 131.00 in Supercomnet Technologies Bhd on November 18, 2024 and sell it today you would lose (8.00) from holding Supercomnet Technologies Bhd or give up 6.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PIE Industrial Bhd vs. Supercomnet Technologies Bhd
Performance |
| Timeline |
| PIE Industrial Bhd |
| Supercomnet Technologies |
PIE Industrial and Supercomnet Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PIE Industrial and Supercomnet Technologies
The main advantage of trading using opposite PIE Industrial and Supercomnet Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PIE Industrial position performs unexpectedly, Supercomnet 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 Supercomnet Technologies will offset losses from the drop in Supercomnet Technologies' long position.| PIE Industrial vs. Kluang Rubber | PIE Industrial vs. Malayan Banking Bhd | PIE Industrial vs. Press Metal Bhd | PIE Industrial vs. Icon Offshore Bhd |
| Supercomnet Technologies vs. Lyc Healthcare Bhd | Supercomnet Technologies vs. PMB Technology Bhd | Supercomnet Technologies vs. Awanbiru Technology Bhd | Supercomnet Technologies vs. CPE Technology Berhad |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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