Correlation Between MyTech Group and Malayan Banking
Can any of the company-specific risk be diversified away by investing in both MyTech Group and Malayan Banking 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 MyTech Group and Malayan Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MyTech Group Bhd and Malayan Banking Bhd, you can compare the effects of market volatilities on MyTech Group and Malayan Banking 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 MyTech Group with a short position of Malayan Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyTech Group and Malayan Banking.
Diversification Opportunities for MyTech Group and Malayan Banking
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between MyTech and Malayan is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding MyTech Group Bhd and Malayan Banking Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malayan Banking Bhd and MyTech 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 MyTech Group Bhd are associated (or correlated) with Malayan Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malayan Banking Bhd has no effect on the direction of MyTech Group i.e., MyTech Group and Malayan Banking go up and down completely randomly.
Pair Corralation between MyTech Group and Malayan Banking
Assuming the 90 days trading horizon MyTech Group Bhd is expected to under-perform the Malayan Banking. In addition to that, MyTech Group is 4.79 times more volatile than Malayan Banking Bhd. It trades about -0.06 of its total potential returns per unit of risk. Malayan Banking Bhd is currently generating about 0.05 per unit of volatility. If you would invest 979.00 in Malayan Banking Bhd on September 1, 2024 and sell it today you would earn a total of 41.00 from holding Malayan Banking Bhd or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MyTech Group Bhd vs. Malayan Banking Bhd
Performance |
| Timeline |
| MyTech Group Bhd |
| Malayan Banking Bhd |
MyTech Group and Malayan Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MyTech Group and Malayan Banking
The main advantage of trading using opposite MyTech Group and Malayan Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MyTech Group position performs unexpectedly, Malayan Banking 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 Malayan Banking will offset losses from the drop in Malayan Banking's long position.| MyTech Group vs. Senheng New Retail | MyTech Group vs. Melewar Industrial Group | MyTech Group vs. Choo Bee Metal | MyTech Group vs. Silver Ridge Holdings |
| Malayan Banking vs. Public Bank Bhd | Malayan Banking vs. Hong Leong Bank | Malayan Banking vs. RHB Bank 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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