Correlation Between Rubberex M and Sunzen Biotech
Can any of the company-specific risk be diversified away by investing in both Rubberex M and Sunzen 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 Rubberex M and Sunzen Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubberex M and Sunzen Biotech Bhd, you can compare the effects of market volatilities on Rubberex M and Sunzen 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 Rubberex M with a short position of Sunzen Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubberex M and Sunzen Biotech.
Diversification Opportunities for Rubberex M and Sunzen Biotech
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rubberex and Sunzen is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Rubberex M and Sunzen Biotech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunzen Biotech Bhd and Rubberex M 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 Rubberex M are associated (or correlated) with Sunzen Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunzen Biotech Bhd has no effect on the direction of Rubberex M i.e., Rubberex M and Sunzen Biotech go up and down completely randomly.
Pair Corralation between Rubberex M and Sunzen Biotech
Assuming the 90 days trading horizon Rubberex M is expected to generate 2.9 times more return on investment than Sunzen Biotech. However, Rubberex M is 2.9 times more volatile than Sunzen Biotech Bhd. It trades about 0.01 of its potential returns per unit of risk. Sunzen Biotech Bhd is currently generating about 0.0 per unit of risk. If you would invest 18.00 in Rubberex M on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Rubberex M or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rubberex M vs. Sunzen Biotech Bhd
Performance |
| Timeline |
| Rubberex M |
| Sunzen Biotech Bhd |
Rubberex M and Sunzen Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubberex M and Sunzen Biotech
The main advantage of trading using opposite Rubberex M and Sunzen Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubberex M position performs unexpectedly, Sunzen 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 Sunzen Biotech will offset losses from the drop in Sunzen Biotech's long position.| Rubberex M vs. Kossan Rubber Industries | Rubberex M vs. Digistar Bhd | Rubberex M vs. Minetech Resources Bhd | Rubberex M vs. Swift Haulage Bhd |
| Sunzen Biotech vs. British American Tobacco | Sunzen Biotech vs. FARM FRESH BERHAD | Sunzen Biotech vs. Apollo Food Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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