Correlation Between Eonmetall Group and Malayan Banking
Can any of the company-specific risk be diversified away by investing in both Eonmetall Group and Malayan Banking 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 Eonmetall Group and Malayan Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eonmetall Group Bhd and Malayan Banking Bhd, you can compare the effects of market volatilities on Eonmetall Group and Malayan Banking 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 Eonmetall Group with a short position of Malayan Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eonmetall Group and Malayan Banking.
Diversification Opportunities for Eonmetall Group and Malayan Banking
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eonmetall and Malayan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Eonmetall Group Bhd and Malayan Banking Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malayan Banking Bhd and Eonmetall Group 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 Eonmetall Group Bhd are associated (or correlated) with Malayan Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malayan Banking Bhd has no effect on the direction of Eonmetall Group i.e., Eonmetall Group and Malayan Banking go up and down completely randomly.
Pair Corralation between Eonmetall Group and Malayan Banking
Assuming the 90 days trading horizon Eonmetall Group Bhd is expected to under-perform the Malayan Banking. In addition to that, Eonmetall Group is 5.27 times more volatile than Malayan Banking Bhd. It trades about -0.14 of its total potential returns per unit of risk. Malayan Banking Bhd is currently generating about -0.03 per unit of volatility. If you would invest 1,012 in Malayan Banking Bhd on October 16, 2024 and sell it today you would lose (4.00) from holding Malayan Banking Bhd or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eonmetall Group Bhd vs. Malayan Banking Bhd
Performance |
| Timeline |
| Eonmetall Group Bhd |
| Malayan Banking Bhd |
Eonmetall Group and Malayan Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eonmetall Group and Malayan Banking
The main advantage of trading using opposite Eonmetall Group and Malayan Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eonmetall Group position performs unexpectedly, Malayan Banking 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 Malayan Banking will offset losses from the drop in Malayan Banking's long position.| Eonmetall Group vs. EA Technique M | Eonmetall Group vs. ES Ceramics Technology | Eonmetall Group vs. SFP Tech Holdings | Eonmetall Group vs. Kossan Rubber Industries |
| Malayan Banking vs. Press Metal Bhd | Malayan Banking vs. IHH Healthcare Bhd | Malayan Banking vs. Eonmetall Group Bhd | Malayan Banking vs. Sports Toto 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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