Correlation Between Uchi Technologies and Public Bank
Can any of the company-specific risk be diversified away by investing in both Uchi Technologies and Public Bank 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 Uchi Technologies and Public Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uchi Technologies Bhd and Public Bank Bhd, you can compare the effects of market volatilities on Uchi Technologies and Public Bank 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 Uchi Technologies with a short position of Public Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uchi Technologies and Public Bank.
Diversification Opportunities for Uchi Technologies and Public Bank
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Uchi and Public is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Uchi Technologies Bhd and Public Bank Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Bank Bhd and Uchi Technologies 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 Uchi Technologies Bhd are associated (or correlated) with Public Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Bank Bhd has no effect on the direction of Uchi Technologies i.e., Uchi Technologies and Public Bank go up and down completely randomly.
Pair Corralation between Uchi Technologies and Public Bank
Assuming the 90 days trading horizon Uchi Technologies Bhd is expected to generate 0.93 times more return on investment than Public Bank. However, Uchi Technologies Bhd is 1.08 times less risky than Public Bank. It trades about 0.07 of its potential returns per unit of risk. Public Bank Bhd is currently generating about -0.06 per unit of risk. If you would invest 361.00 in Uchi Technologies Bhd on November 2, 2024 and sell it today you would earn a total of 26.00 from holding Uchi Technologies Bhd or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uchi Technologies Bhd vs. Public Bank Bhd
Performance |
| Timeline |
| Uchi Technologies Bhd |
| Public Bank Bhd |
Uchi Technologies and Public Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uchi Technologies and Public Bank
The main advantage of trading using opposite Uchi Technologies and Public Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uchi Technologies position performs unexpectedly, Public Bank 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 Public Bank will offset losses from the drop in Public Bank's long position.| Uchi Technologies vs. IHH Healthcare Bhd | Uchi Technologies vs. PMB Technology Bhd | Uchi Technologies vs. Daya Materials Bhd | Uchi Technologies vs. Eversafe Rubber Bhd |
| Public Bank vs. Malayan Banking Bhd | Public Bank vs. Hong Leong Bank | Public Bank vs. RHB Bank Bhd | Public Bank vs. Nexgram Holdings 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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