Correlation Between Computer Forms and Berjaya Food
Can any of the company-specific risk be diversified away by investing in both Computer Forms and Berjaya Food 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 Berjaya Food 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 Berjaya Food Bhd, you can compare the effects of market volatilities on Computer Forms and Berjaya Food 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 Berjaya Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Forms and Berjaya Food.
Diversification Opportunities for Computer Forms and Berjaya Food
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Computer and Berjaya is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Computer Forms Bhd and Berjaya Food Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berjaya Food 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 Berjaya Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berjaya Food Bhd has no effect on the direction of Computer Forms i.e., Computer Forms and Berjaya Food go up and down completely randomly.
Pair Corralation between Computer Forms and Berjaya Food
Assuming the 90 days trading horizon Computer Forms Bhd is expected to under-perform the Berjaya Food. In addition to that, Computer Forms is 1.08 times more volatile than Berjaya Food Bhd. It trades about -0.07 of its total potential returns per unit of risk. Berjaya Food Bhd is currently generating about 0.13 per unit of volatility. If you would invest 35.00 in Berjaya Food Bhd on November 4, 2024 and sell it today you would earn a total of 4.00 from holding Berjaya Food Bhd or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Computer Forms Bhd vs. Berjaya Food Bhd
Performance |
| Timeline |
| Computer Forms Bhd |
| Berjaya Food Bhd |
Computer Forms and Berjaya Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Forms and Berjaya Food
The main advantage of trading using opposite Computer Forms and Berjaya Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Forms position performs unexpectedly, Berjaya Food 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 Berjaya Food will offset losses from the drop in Berjaya Food's long position.| Computer Forms vs. Diversified Gateway Solutions | Computer Forms vs. MClean Technologies Bhd | Computer Forms vs. Sports Toto Berhad | Computer Forms vs. PIE Industrial Bhd |
| Berjaya Food vs. Kawan Food Bhd | Berjaya Food vs. ES Ceramics Technology | Berjaya Food vs. EA Technique M | Berjaya Food vs. Globetronics Tech 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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