Correlation Between Computer Forms and Public Bank
Can any of the company-specific risk be diversified away by investing in both Computer Forms and Public Bank 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 Public Bank 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 Public Bank Bhd, you can compare the effects of market volatilities on Computer Forms and Public Bank 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 Public Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Forms and Public Bank.
Diversification Opportunities for Computer Forms and Public Bank
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Computer and Public is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Computer Forms Bhd and Public Bank Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Bank Bhd 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 Public Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Bank Bhd has no effect on the direction of Computer Forms i.e., Computer Forms and Public Bank go up and down completely randomly.
Pair Corralation between Computer Forms and Public Bank
Assuming the 90 days trading horizon Computer Forms Bhd is expected to under-perform the Public Bank. In addition to that, Computer Forms is 4.34 times more volatile than Public Bank Bhd. It trades about 0.0 of its total potential returns per unit of risk. Public Bank Bhd is currently generating about 0.04 per unit of volatility. If you would invest 406.00 in Public Bank Bhd on September 4, 2024 and sell it today you would earn a total of 41.00 from holding Public Bank Bhd or generate 10.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Computer Forms Bhd vs. Public Bank Bhd
Performance |
| Timeline |
| Computer Forms Bhd |
| Public Bank Bhd |
Computer Forms and Public Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Forms and Public Bank
The main advantage of trading using opposite Computer Forms and Public Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Forms position performs unexpectedly, Public Bank 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 Public Bank will offset losses from the drop in Public Bank's long position.| Computer Forms vs. Minetech Resources Bhd | Computer Forms vs. Swift Haulage Bhd | Computer Forms vs. Insas Bhd | Computer Forms vs. Bina Darulaman Bhd |
| Public Bank vs. Malayan Banking Bhd | Public Bank vs. Hong Leong Bank | Public Bank vs. RHB Bank Bhd | Public Bank vs. Carlsberg Brewery Malaysia |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |