Correlation Between Minetech Resources and SFP Tech
Can any of the company-specific risk be diversified away by investing in both Minetech Resources and SFP Tech 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 Minetech Resources and SFP Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minetech Resources Bhd and SFP Tech Holdings, you can compare the effects of market volatilities on Minetech Resources and SFP Tech 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 Minetech Resources with a short position of SFP Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minetech Resources and SFP Tech.
Diversification Opportunities for Minetech Resources and SFP Tech
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Minetech and SFP is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Minetech Resources Bhd and SFP Tech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFP Tech Holdings and Minetech Resources 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 Minetech Resources Bhd are associated (or correlated) with SFP Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFP Tech Holdings has no effect on the direction of Minetech Resources i.e., Minetech Resources and SFP Tech go up and down completely randomly.
Pair Corralation between Minetech Resources and SFP Tech
Assuming the 90 days trading horizon Minetech Resources is expected to generate 6.55 times less return on investment than SFP Tech. In addition to that, Minetech Resources is 1.7 times more volatile than SFP Tech Holdings. It trades about 0.02 of its total potential returns per unit of risk. SFP Tech Holdings is currently generating about 0.22 per unit of volatility. If you would invest 60.00 in SFP Tech Holdings on September 1, 2024 and sell it today you would earn a total of 7.00 from holding SFP Tech Holdings or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minetech Resources Bhd vs. SFP Tech Holdings
Performance |
| Timeline |
| Minetech Resources Bhd |
| SFP Tech Holdings |
Minetech Resources and SFP Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minetech Resources and SFP Tech
The main advantage of trading using opposite Minetech Resources and SFP Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minetech Resources position performs unexpectedly, SFP Tech 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 SFP Tech will offset losses from the drop in SFP Tech's long position.| Minetech Resources vs. Digistar Bhd | Minetech Resources vs. Swift Haulage Bhd | Minetech Resources vs. Bina Darulaman Bhd | Minetech Resources vs. Sunzen Biotech Bhd |
| SFP Tech vs. Lotte Chemical Titan | SFP Tech vs. Sports Toto Berhad | SFP Tech vs. Media Prima Bhd | SFP Tech 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |