Correlation Between Rubberex M and Bina Darulaman
Can any of the company-specific risk be diversified away by investing in both Rubberex M and Bina Darulaman 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 Bina Darulaman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubberex M and Bina Darulaman Bhd, you can compare the effects of market volatilities on Rubberex M and Bina Darulaman 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 Bina Darulaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubberex M and Bina Darulaman.
Diversification Opportunities for Rubberex M and Bina Darulaman
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rubberex and Bina is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Rubberex M and Bina Darulaman Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bina Darulaman 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 Bina Darulaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bina Darulaman Bhd has no effect on the direction of Rubberex M i.e., Rubberex M and Bina Darulaman go up and down completely randomly.
Pair Corralation between Rubberex M and Bina Darulaman
Assuming the 90 days trading horizon Rubberex M is expected to generate 1.31 times more return on investment than Bina Darulaman. However, Rubberex M is 1.31 times more volatile than Bina Darulaman Bhd. It trades about 0.01 of its potential returns per unit of risk. Bina Darulaman Bhd is currently generating about 0.01 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rubberex M vs. Bina Darulaman Bhd
Performance |
| Timeline |
| Rubberex M |
| Bina Darulaman Bhd |
Rubberex M and Bina Darulaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubberex M and Bina Darulaman
The main advantage of trading using opposite Rubberex M and Bina Darulaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubberex M position performs unexpectedly, Bina Darulaman 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 Bina Darulaman will offset losses from the drop in Bina Darulaman'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 |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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