Correlation Between Eonmetall Group and MyNEWS Holdings
Can any of the company-specific risk be diversified away by investing in both Eonmetall Group and MyNEWS Holdings 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 MyNEWS Holdings 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 myNEWS Holdings Bhd, you can compare the effects of market volatilities on Eonmetall Group and MyNEWS Holdings 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 MyNEWS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eonmetall Group and MyNEWS Holdings.
Diversification Opportunities for Eonmetall Group and MyNEWS Holdings
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eonmetall and MyNEWS is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Eonmetall Group Bhd and myNEWS Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on myNEWS Holdings 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 MyNEWS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of myNEWS Holdings Bhd has no effect on the direction of Eonmetall Group i.e., Eonmetall Group and MyNEWS Holdings go up and down completely randomly.
Pair Corralation between Eonmetall Group and MyNEWS Holdings
Assuming the 90 days trading horizon Eonmetall Group Bhd is expected to under-perform the MyNEWS Holdings. In addition to that, Eonmetall Group is 1.42 times more volatile than myNEWS Holdings Bhd. It trades about -0.06 of its total potential returns per unit of risk. myNEWS Holdings Bhd is currently generating about 0.04 per unit of volatility. If you would invest 60.00 in myNEWS Holdings Bhd on September 3, 2024 and sell it today you would earn a total of 4.00 from holding myNEWS Holdings Bhd or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eonmetall Group Bhd vs. myNEWS Holdings Bhd
Performance |
| Timeline |
| Eonmetall Group Bhd |
| myNEWS Holdings Bhd |
Eonmetall Group and MyNEWS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eonmetall Group and MyNEWS Holdings
The main advantage of trading using opposite Eonmetall Group and MyNEWS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eonmetall Group position performs unexpectedly, MyNEWS Holdings 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 MyNEWS Holdings will offset losses from the drop in MyNEWS Holdings' long position.| Eonmetall Group vs. Malaysia Steel Works | Eonmetall Group vs. Daya Materials Bhd | Eonmetall Group vs. Aeon Credit Service | Eonmetall Group vs. Farm Price Holdings |
| MyNEWS Holdings vs. Shangri La Hotels | MyNEWS Holdings vs. Central Industrial Corp | MyNEWS Holdings vs. Petronas Chemicals Group | MyNEWS Holdings vs. YX Precious Metals |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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