Correlation Between Minetech Resources and Choo Bee
Can any of the company-specific risk be diversified away by investing in both Minetech Resources and Choo Bee 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 Choo Bee 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 Choo Bee Metal, you can compare the effects of market volatilities on Minetech Resources and Choo Bee 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 Choo Bee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minetech Resources and Choo Bee.
Diversification Opportunities for Minetech Resources and Choo Bee
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Minetech and Choo is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Minetech Resources Bhd and Choo Bee Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choo Bee Metal 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 Choo Bee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choo Bee Metal has no effect on the direction of Minetech Resources i.e., Minetech Resources and Choo Bee go up and down completely randomly.
Pair Corralation between Minetech Resources and Choo Bee
Assuming the 90 days trading horizon Minetech Resources Bhd is expected to generate 3.37 times more return on investment than Choo Bee. However, Minetech Resources is 3.37 times more volatile than Choo Bee Metal. It trades about 0.05 of its potential returns per unit of risk. Choo Bee Metal is currently generating about -0.03 per unit of risk. If you would invest 5.00 in Minetech Resources Bhd on November 28, 2024 and sell it today you would earn a total of 3.50 from holding Minetech Resources Bhd or generate 70.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 89.67% |
| Values | Daily Returns |
Minetech Resources Bhd vs. Choo Bee Metal
Performance |
| Timeline |
| Minetech Resources Bhd |
| Choo Bee Metal |
Minetech Resources and Choo Bee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minetech Resources and Choo Bee
The main advantage of trading using opposite Minetech Resources and Choo Bee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minetech Resources position performs unexpectedly, Choo Bee 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 Choo Bee will offset losses from the drop in Choo Bee's long position.| Minetech Resources vs. EA Technique M | Minetech Resources vs. Saudee Group Bhd | Minetech Resources vs. Digistar Bhd | Minetech Resources vs. AirAsia X Bhd |
| Choo Bee vs. Impiana Hotels Bhd | Choo Bee vs. CSC Steel Holdings | Choo Bee vs. Leader Steel Holdings | Choo Bee vs. Al Aqar Healthcare |
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 Positions Ratings module to 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.
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