Correlation Between MyTech Group and Pantech Group
Can any of the company-specific risk be diversified away by investing in both MyTech Group and Pantech Group 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 Pantech Group 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 Pantech Group Holdings, you can compare the effects of market volatilities on MyTech Group and Pantech Group 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 Pantech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyTech Group and Pantech Group.
Diversification Opportunities for MyTech Group and Pantech Group
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MyTech and Pantech is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding MyTech Group Bhd and Pantech Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pantech Group Holdings 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 Pantech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pantech Group Holdings has no effect on the direction of MyTech Group i.e., MyTech Group and Pantech Group go up and down completely randomly.
Pair Corralation between MyTech Group and Pantech Group
Assuming the 90 days trading horizon MyTech Group Bhd is expected to generate 2.88 times more return on investment than Pantech Group. However, MyTech Group is 2.88 times more volatile than Pantech Group Holdings. It trades about 0.03 of its potential returns per unit of risk. Pantech Group Holdings is currently generating about 0.05 per unit of risk. If you would invest 37.00 in MyTech Group Bhd on September 4, 2024 and sell it today you would earn a total of 5.00 from holding MyTech Group Bhd or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MyTech Group Bhd vs. Pantech Group Holdings
Performance |
| Timeline |
| MyTech Group Bhd |
| Pantech Group Holdings |
MyTech Group and Pantech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MyTech Group and Pantech Group
The main advantage of trading using opposite MyTech Group and Pantech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MyTech Group position performs unexpectedly, Pantech Group 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 Pantech Group will offset losses from the drop in Pantech Group's long position.| MyTech Group vs. Apollo Food Holdings | MyTech Group vs. Eonmetall Group Bhd | MyTech Group vs. Oriental Food Industries | MyTech Group vs. Senheng New Retail |
| Pantech Group vs. YX Precious Metals | Pantech Group vs. MyTech Group Bhd | Pantech Group vs. Magni Tech Industries | Pantech Group vs. Minetech Resources 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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