Correlation Between PMB Technology and TIME Dotcom
Can any of the company-specific risk be diversified away by investing in both PMB Technology and TIME Dotcom 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 PMB Technology and TIME Dotcom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PMB Technology Bhd and TIME Dotcom Bhd, you can compare the effects of market volatilities on PMB Technology and TIME Dotcom 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 PMB Technology with a short position of TIME Dotcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of PMB Technology and TIME Dotcom.
Diversification Opportunities for PMB Technology and TIME Dotcom
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between PMB and TIME is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding PMB Technology Bhd and TIME Dotcom Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIME Dotcom Bhd and PMB Technology 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 PMB Technology Bhd are associated (or correlated) with TIME Dotcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIME Dotcom Bhd has no effect on the direction of PMB Technology i.e., PMB Technology and TIME Dotcom go up and down completely randomly.
Pair Corralation between PMB Technology and TIME Dotcom
Assuming the 90 days trading horizon PMB Technology Bhd is expected to under-perform the TIME Dotcom. In addition to that, PMB Technology is 2.12 times more volatile than TIME Dotcom Bhd. It trades about -0.06 of its total potential returns per unit of risk. TIME Dotcom Bhd is currently generating about 0.03 per unit of volatility. If you would invest 400.00 in TIME Dotcom Bhd on September 18, 2024 and sell it today you would earn a total of 61.00 from holding TIME Dotcom Bhd or generate 15.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
PMB Technology Bhd vs. TIME Dotcom Bhd
Performance |
| Timeline |
| PMB Technology Bhd |
| TIME Dotcom Bhd |
PMB Technology and TIME Dotcom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PMB Technology and TIME Dotcom
The main advantage of trading using opposite PMB Technology and TIME Dotcom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PMB Technology position performs unexpectedly, TIME Dotcom 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 TIME Dotcom will offset losses from the drop in TIME Dotcom's long position.| PMB Technology vs. Press Metal Bhd | PMB Technology vs. Pantech Group Holdings | PMB Technology vs. Coraza Integrated Technology | PMB Technology vs. Southern Steel Bhd |
| TIME Dotcom vs. Melewar Industrial Group | TIME Dotcom vs. Sapura Industrial Bhd | TIME Dotcom vs. Aurelius Technologies Bhd | TIME Dotcom vs. Cloudpoint 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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