Correlation Between Rubberex M and Berjaya Food
Can any of the company-specific risk be diversified away by investing in both Rubberex M and Berjaya Food 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 Berjaya Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubberex M and Berjaya Food Bhd, you can compare the effects of market volatilities on Rubberex M and Berjaya Food 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 Berjaya Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubberex M and Berjaya Food.
Diversification Opportunities for Rubberex M and Berjaya Food
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rubberex and Berjaya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rubberex M and Berjaya Food Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berjaya Food 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 Berjaya Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berjaya Food Bhd has no effect on the direction of Rubberex M i.e., Rubberex M and Berjaya Food go up and down completely randomly.
Pair Corralation between Rubberex M and Berjaya Food
Assuming the 90 days trading horizon Rubberex M is expected to generate 0.61 times more return on investment than Berjaya Food. However, Rubberex M is 1.64 times less risky than Berjaya Food. It trades about 0.01 of its potential returns per unit of risk. Berjaya Food Bhd is currently generating about -0.28 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rubberex M vs. Berjaya Food Bhd
Performance |
| Timeline |
| Rubberex M |
| Berjaya Food Bhd |
Rubberex M and Berjaya Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubberex M and Berjaya Food
The main advantage of trading using opposite Rubberex M and Berjaya Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubberex M position performs unexpectedly, Berjaya Food 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 Berjaya Food will offset losses from the drop in Berjaya Food'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 |
| Berjaya Food vs. Shangri La Hotels | Berjaya Food vs. Digistar Bhd | Berjaya Food vs. Minetech Resources Bhd | Berjaya Food vs. Swift Haulage 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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