Correlation Between Computer Forms and Aurelius Technologies
Can any of the company-specific risk be diversified away by investing in both Computer Forms and Aurelius Technologies 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 Aurelius Technologies 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 Aurelius Technologies Bhd, you can compare the effects of market volatilities on Computer Forms and Aurelius Technologies 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 Aurelius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Forms and Aurelius Technologies.
Diversification Opportunities for Computer Forms and Aurelius Technologies
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Computer and Aurelius is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Computer Forms Bhd and Aurelius Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelius Technologies 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 Aurelius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelius Technologies Bhd has no effect on the direction of Computer Forms i.e., Computer Forms and Aurelius Technologies go up and down completely randomly.
Pair Corralation between Computer Forms and Aurelius Technologies
Assuming the 90 days trading horizon Computer Forms Bhd is expected to under-perform the Aurelius Technologies. In addition to that, Computer Forms is 1.34 times more volatile than Aurelius Technologies Bhd. It trades about -0.11 of its total potential returns per unit of risk. Aurelius Technologies Bhd is currently generating about 0.14 per unit of volatility. If you would invest 279.00 in Aurelius Technologies Bhd on September 3, 2024 and sell it today you would earn a total of 19.00 from holding Aurelius Technologies Bhd or generate 6.81% 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. Aurelius Technologies Bhd
Performance |
| Timeline |
| Computer Forms Bhd |
| Aurelius Technologies Bhd |
Computer Forms and Aurelius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Forms and Aurelius Technologies
The main advantage of trading using opposite Computer Forms and Aurelius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Forms position performs unexpectedly, Aurelius Technologies 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 Aurelius Technologies will offset losses from the drop in Aurelius Technologies' long position.| Computer Forms vs. Tex Cycle Technology | Computer Forms vs. Minetech Resources Bhd | Computer Forms vs. Swift Haulage Bhd | Computer Forms vs. Insas Bhd |
| Aurelius Technologies vs. ViTrox Bhd | Aurelius Technologies vs. MI Technovation Bhd | Aurelius Technologies vs. Minetech Resources Bhd | Aurelius Technologies vs. Swift Haulage 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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