Correlation Between Computer Forms and Coraza Integrated
Can any of the company-specific risk be diversified away by investing in both Computer Forms and Coraza Integrated 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 Computer Forms and Coraza Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer Forms Bhd and Coraza Integrated Technology, you can compare the effects of market volatilities on Computer Forms and Coraza Integrated 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 Computer Forms with a short position of Coraza Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Forms and Coraza Integrated.
Diversification Opportunities for Computer Forms and Coraza Integrated
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Computer and Coraza is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Computer Forms Bhd and Coraza Integrated Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coraza Integrated and Computer Forms 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 Computer Forms Bhd are associated (or correlated) with Coraza Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coraza Integrated has no effect on the direction of Computer Forms i.e., Computer Forms and Coraza Integrated go up and down completely randomly.
Pair Corralation between Computer Forms and Coraza Integrated
Assuming the 90 days trading horizon Computer Forms Bhd is expected to generate 0.86 times more return on investment than Coraza Integrated. However, Computer Forms Bhd is 1.17 times less risky than Coraza Integrated. It trades about 0.01 of its potential returns per unit of risk. Coraza Integrated Technology is currently generating about -0.18 per unit of risk. If you would invest 12.00 in Computer Forms Bhd on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Computer Forms Bhd 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 |
Computer Forms Bhd vs. Coraza Integrated Technology
Performance |
| Timeline |
| Computer Forms Bhd |
| Coraza Integrated |
Computer Forms and Coraza Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Forms and Coraza Integrated
The main advantage of trading using opposite Computer Forms and Coraza Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Forms position performs unexpectedly, Coraza Integrated 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 Coraza Integrated will offset losses from the drop in Coraza Integrated's long position.| Computer Forms vs. Dufu Tech Corp | Computer Forms vs. Central Industrial Corp | Computer Forms vs. ONETECH SOLUTIONS HOLDINGS | Computer Forms vs. Binasat Communications Bhd |
| Coraza Integrated vs. Press Metal Bhd | Coraza Integrated vs. PMB Technology Bhd | Coraza Integrated vs. Pantech Group Holdings | Coraza Integrated vs. CSC 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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