Correlation Between Minetech Resources and Mah Sing
Can any of the company-specific risk be diversified away by investing in both Minetech Resources and Mah Sing 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 Mah Sing 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 Mah Sing Group, you can compare the effects of market volatilities on Minetech Resources and Mah Sing 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 Mah Sing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minetech Resources and Mah Sing.
Diversification Opportunities for Minetech Resources and Mah Sing
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Minetech and Mah is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Minetech Resources Bhd and Mah Sing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mah Sing Group 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 Mah Sing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mah Sing Group has no effect on the direction of Minetech Resources i.e., Minetech Resources and Mah Sing go up and down completely randomly.
Pair Corralation between Minetech Resources and Mah Sing
Assuming the 90 days trading horizon Minetech Resources Bhd is expected to generate 2.69 times more return on investment than Mah Sing. However, Minetech Resources is 2.69 times more volatile than Mah Sing Group. It trades about 0.06 of its potential returns per unit of risk. Mah Sing Group is currently generating about 0.12 per unit of risk. If you would invest 5.50 in Minetech Resources Bhd on August 28, 2024 and sell it today you would earn a total of 8.50 from holding Minetech Resources Bhd or generate 154.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minetech Resources Bhd vs. Mah Sing Group
Performance |
| Timeline |
| Minetech Resources Bhd |
| Mah Sing Group |
Minetech Resources and Mah Sing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minetech Resources and Mah Sing
The main advantage of trading using opposite Minetech Resources and Mah Sing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minetech Resources position performs unexpectedly, Mah Sing 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 Mah Sing will offset losses from the drop in Mah Sing's long position.| Minetech Resources vs. HeiTech Padu Bhd | Minetech Resources vs. Lysaght Galvanized Steel | Minetech Resources vs. Digistar Bhd | Minetech Resources vs. Swift Haulage Bhd |
| Mah Sing vs. Duopharma Biotech Bhd | Mah Sing vs. Press Metal Bhd | Mah Sing vs. Icon Offshore Bhd | Mah Sing 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |