Correlation Between Computer Forms and Protasco Bhd
Can any of the company-specific risk be diversified away by investing in both Computer Forms and Protasco Bhd 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 Protasco Bhd 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 Protasco Bhd, you can compare the effects of market volatilities on Computer Forms and Protasco Bhd 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 Protasco Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Forms and Protasco Bhd.
Diversification Opportunities for Computer Forms and Protasco Bhd
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Computer and Protasco is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Computer Forms Bhd and Protasco Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protasco 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 Protasco Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protasco Bhd has no effect on the direction of Computer Forms i.e., Computer Forms and Protasco Bhd go up and down completely randomly.
Pair Corralation between Computer Forms and Protasco Bhd
Assuming the 90 days trading horizon Computer Forms Bhd is expected to under-perform the Protasco Bhd. In addition to that, Computer Forms is 1.47 times more volatile than Protasco Bhd. It trades about -0.08 of its total potential returns per unit of risk. Protasco Bhd is currently generating about 0.09 per unit of volatility. If you would invest 33.00 in Protasco Bhd on November 3, 2024 and sell it today you would earn a total of 3.00 from holding Protasco Bhd or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Computer Forms Bhd vs. Protasco Bhd
Performance |
| Timeline |
| Computer Forms Bhd |
| Protasco Bhd |
Computer Forms and Protasco Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Forms and Protasco Bhd
The main advantage of trading using opposite Computer Forms and Protasco Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Forms position performs unexpectedly, Protasco Bhd 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 Protasco Bhd will offset losses from the drop in Protasco Bhd's long position.| Computer Forms vs. Lotte Chemical Titan | Computer Forms vs. Nova Wellness Group | Computer Forms vs. Oriental Food Industries | Computer Forms vs. Kawan Food Bhd |
| Protasco Bhd vs. Senheng New Retail | Protasco Bhd vs. Malayan Banking Bhd | Protasco Bhd vs. Uchi Technologies Bhd | Protasco Bhd vs. Datasonic Group 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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