Correlation Between PMB Technology and Pantech Group
Can any of the company-specific risk be diversified away by investing in both PMB Technology and Pantech Group 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 Pantech Group 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 Pantech Group Holdings, you can compare the effects of market volatilities on PMB Technology and Pantech Group 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 Pantech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PMB Technology and Pantech Group.
Diversification Opportunities for PMB Technology and Pantech Group
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PMB and Pantech is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding PMB Technology Bhd and Pantech Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pantech Group Holdings 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 Pantech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pantech Group Holdings has no effect on the direction of PMB Technology i.e., PMB Technology and Pantech Group go up and down completely randomly.
Pair Corralation between PMB Technology and Pantech Group
Assuming the 90 days trading horizon PMB Technology Bhd is expected to under-perform the Pantech Group. In addition to that, PMB Technology is 1.46 times more volatile than Pantech Group Holdings. It trades about -0.06 of its total potential returns per unit of risk. Pantech Group Holdings is currently generating about 0.05 per unit of volatility. If you would invest 68.00 in Pantech Group Holdings on August 24, 2024 and sell it today you would earn a total of 28.00 from holding Pantech Group Holdings or generate 41.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PMB Technology Bhd vs. Pantech Group Holdings
Performance |
| Timeline |
| PMB Technology Bhd |
| Pantech Group Holdings |
PMB Technology and Pantech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PMB Technology and Pantech Group
The main advantage of trading using opposite PMB Technology and Pantech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PMB Technology position performs unexpectedly, Pantech Group 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 Pantech Group will offset losses from the drop in Pantech Group's long position.| PMB Technology vs. Tex Cycle Technology | PMB Technology vs. Aeon Credit Service | PMB Technology vs. Public Bank Bhd | PMB Technology vs. Alliance Financial Group |
| Pantech Group vs. Apollo Food Holdings | Pantech Group vs. Oriental Food Industries | Pantech Group vs. Dataprep Holdings Bhd | Pantech Group vs. Shangri La Hotels |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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