Correlation Between MyTech Group and Supermax Bhd
Can any of the company-specific risk be diversified away by investing in both MyTech Group and Supermax Bhd 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 Supermax Bhd 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 Supermax Bhd, you can compare the effects of market volatilities on MyTech Group and Supermax Bhd 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 Supermax Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyTech Group and Supermax Bhd.
Diversification Opportunities for MyTech Group and Supermax Bhd
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MyTech and Supermax is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding MyTech Group Bhd and Supermax Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supermax 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 Supermax Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supermax Bhd has no effect on the direction of MyTech Group i.e., MyTech Group and Supermax Bhd go up and down completely randomly.
Pair Corralation between MyTech Group and Supermax Bhd
Assuming the 90 days trading horizon MyTech Group Bhd is expected to generate 1.61 times more return on investment than Supermax Bhd. However, MyTech Group is 1.61 times more volatile than Supermax Bhd. It trades about 0.02 of its potential returns per unit of risk. Supermax Bhd is currently generating about 0.0 per unit of risk. If you would invest 38.00 in MyTech Group Bhd on September 3, 2024 and sell it today you would earn a total of 0.00 from holding MyTech Group Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MyTech Group Bhd vs. Supermax Bhd
Performance |
| Timeline |
| MyTech Group Bhd |
| Supermax Bhd |
MyTech Group and Supermax Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MyTech Group and Supermax Bhd
The main advantage of trading using opposite MyTech Group and Supermax Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MyTech Group position performs unexpectedly, Supermax Bhd 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 Supermax Bhd will offset losses from the drop in Supermax Bhd's long position.| MyTech Group vs. Greatech Technology Bhd | MyTech Group vs. Genetec Technology Bhd | MyTech Group vs. PIE Industrial Bhd | MyTech Group vs. Dufu Tech Corp |
| Supermax Bhd vs. Public Packages Holdings | Supermax Bhd vs. Binasat Communications Bhd | Supermax Bhd vs. MyTech Group Bhd | Supermax Bhd vs. IHH Healthcare 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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