Correlation Between Rubberex M and MI Technovation
Can any of the company-specific risk be diversified away by investing in both Rubberex M and MI Technovation 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 MI Technovation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubberex M and MI Technovation Bhd, you can compare the effects of market volatilities on Rubberex M and MI Technovation 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 MI Technovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubberex M and MI Technovation.
Diversification Opportunities for Rubberex M and MI Technovation
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Rubberex and 5286 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Rubberex M and MI Technovation Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MI Technovation 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 MI Technovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MI Technovation Bhd has no effect on the direction of Rubberex M i.e., Rubberex M and MI Technovation go up and down completely randomly.
Pair Corralation between Rubberex M and MI Technovation
Assuming the 90 days trading horizon Rubberex M is expected to generate 1.33 times more return on investment than MI Technovation. However, Rubberex M is 1.33 times more volatile than MI Technovation Bhd. It trades about -0.09 of its potential returns per unit of risk. MI Technovation Bhd is currently generating about -0.28 per unit of risk. If you would invest 17.00 in Rubberex M on November 28, 2024 and sell it today you would lose (1.00) from holding Rubberex M or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rubberex M vs. MI Technovation Bhd
Performance |
| Timeline |
| Rubberex M |
| MI Technovation Bhd |
Rubberex M and MI Technovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubberex M and MI Technovation
The main advantage of trading using opposite Rubberex M and MI Technovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubberex M position performs unexpectedly, MI Technovation 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 MI Technovation will offset losses from the drop in MI Technovation's long position.| Rubberex M vs. Kluang Rubber | Rubberex M vs. FARM FRESH BERHAD | Rubberex M vs. Farm Price Holdings | Rubberex M vs. Homeritz Bhd |
| MI Technovation vs. Press Metal Bhd | MI Technovation vs. Choo Bee Metal | MI Technovation vs. Datasonic Group Bhd | MI Technovation vs. Leader Steel 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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