Correlation Between MyTech Group and Duopharma Biotech
Can any of the company-specific risk be diversified away by investing in both MyTech Group and Duopharma Biotech 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 Duopharma Biotech 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 Duopharma Biotech Bhd, you can compare the effects of market volatilities on MyTech Group and Duopharma Biotech 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 Duopharma Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyTech Group and Duopharma Biotech.
Diversification Opportunities for MyTech Group and Duopharma Biotech
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between MyTech and Duopharma is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding MyTech Group Bhd and Duopharma Biotech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duopharma Biotech 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 Duopharma Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duopharma Biotech Bhd has no effect on the direction of MyTech Group i.e., MyTech Group and Duopharma Biotech go up and down completely randomly.
Pair Corralation between MyTech Group and Duopharma Biotech
Assuming the 90 days trading horizon MyTech Group Bhd is expected to under-perform the Duopharma Biotech. In addition to that, MyTech Group is 1.64 times more volatile than Duopharma Biotech Bhd. It trades about -0.36 of its total potential returns per unit of risk. Duopharma Biotech Bhd is currently generating about -0.13 per unit of volatility. If you would invest 127.00 in Duopharma Biotech Bhd on September 1, 2024 and sell it today you would lose (4.00) from holding Duopharma Biotech Bhd or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MyTech Group Bhd vs. Duopharma Biotech Bhd
Performance |
| Timeline |
| MyTech Group Bhd |
| Duopharma Biotech Bhd |
MyTech Group and Duopharma Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MyTech Group and Duopharma Biotech
The main advantage of trading using opposite MyTech Group and Duopharma Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MyTech Group position performs unexpectedly, Duopharma Biotech 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 Duopharma Biotech will offset losses from the drop in Duopharma Biotech'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 |
| Duopharma Biotech vs. Digistar Bhd | Duopharma Biotech vs. Minetech Resources Bhd | Duopharma Biotech vs. Swift Haulage Bhd | Duopharma Biotech vs. Bina Darulaman 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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