Correlation Between Dufu Tech and Public Bank
Can any of the company-specific risk be diversified away by investing in both Dufu Tech and Public Bank 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 Dufu Tech and Public Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dufu Tech Corp and Public Bank Bhd, you can compare the effects of market volatilities on Dufu Tech and Public Bank 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 Dufu Tech with a short position of Public Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dufu Tech and Public Bank.
Diversification Opportunities for Dufu Tech and Public Bank
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dufu and Public is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Dufu Tech Corp and Public Bank Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Bank Bhd and Dufu Tech 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 Dufu Tech Corp are associated (or correlated) with Public Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Bank Bhd has no effect on the direction of Dufu Tech i.e., Dufu Tech and Public Bank go up and down completely randomly.
Pair Corralation between Dufu Tech and Public Bank
Assuming the 90 days trading horizon Dufu Tech Corp is expected to under-perform the Public Bank. In addition to that, Dufu Tech is 2.46 times more volatile than Public Bank Bhd. It trades about -0.01 of its total potential returns per unit of risk. Public Bank Bhd is currently generating about 0.03 per unit of volatility. If you would invest 388.00 in Public Bank Bhd on November 1, 2024 and sell it today you would earn a total of 49.00 from holding Public Bank Bhd or generate 12.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dufu Tech Corp vs. Public Bank Bhd
Performance |
| Timeline |
| Dufu Tech Corp |
| Public Bank Bhd |
Dufu Tech and Public Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dufu Tech and Public Bank
The main advantage of trading using opposite Dufu Tech and Public Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dufu Tech position performs unexpectedly, Public Bank 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 Public Bank will offset losses from the drop in Public Bank's long position.| Dufu Tech vs. Diversified Gateway Solutions | Dufu Tech vs. Datasonic Group Bhd | Dufu Tech vs. Shangri La Hotels | Dufu Tech vs. DC HEALTHCARE HOLDINGS |
| Public Bank vs. Resintech Bhd | Public Bank vs. Dufu Tech Corp | Public Bank vs. CSC Steel Holdings | Public Bank vs. Aurelius Technologies Bhd |
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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