Correlation Between Supermax Bhd and Aurelius Technologies
Can any of the company-specific risk be diversified away by investing in both Supermax Bhd and Aurelius 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 Supermax Bhd and Aurelius Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supermax Bhd and Aurelius Technologies Bhd, you can compare the effects of market volatilities on Supermax Bhd and Aurelius 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 Supermax Bhd with a short position of Aurelius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supermax Bhd and Aurelius Technologies.
Diversification Opportunities for Supermax Bhd and Aurelius Technologies
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Supermax and Aurelius is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Supermax Bhd and Aurelius Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelius Technologies Bhd and Supermax Bhd 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 Supermax Bhd are associated (or correlated) with Aurelius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelius Technologies Bhd has no effect on the direction of Supermax Bhd i.e., Supermax Bhd and Aurelius Technologies go up and down completely randomly.
Pair Corralation between Supermax Bhd and Aurelius Technologies
Assuming the 90 days trading horizon Supermax Bhd is expected to generate 1.19 times less return on investment than Aurelius Technologies. In addition to that, Supermax Bhd is 1.19 times more volatile than Aurelius Technologies Bhd. It trades about 0.04 of its total potential returns per unit of risk. Aurelius Technologies Bhd is currently generating about 0.06 per unit of volatility. If you would invest 185.00 in Aurelius Technologies Bhd on September 12, 2024 and sell it today you would earn a total of 120.00 from holding Aurelius Technologies Bhd or generate 64.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supermax Bhd vs. Aurelius Technologies Bhd
Performance |
| Timeline |
| Supermax Bhd |
| Aurelius Technologies Bhd |
Supermax Bhd and Aurelius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supermax Bhd and Aurelius Technologies
The main advantage of trading using opposite Supermax Bhd and Aurelius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supermax Bhd position performs unexpectedly, Aurelius 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 Aurelius Technologies will offset losses from the drop in Aurelius Technologies' long position.| Supermax Bhd vs. Kossan Rubber Industries | Supermax Bhd vs. Rubberex M | Supermax Bhd vs. Al Aqar Healthcare | Supermax Bhd vs. PMB Technology Bhd |
| Aurelius Technologies vs. MI Technovation Bhd | Aurelius Technologies vs. Globetronics Tech Bhd | Aurelius Technologies vs. Al Aqar Healthcare | Aurelius Technologies vs. PMB Technology 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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