Correlation Between PGF Capital and Sungei Bagan
Can any of the company-specific risk be diversified away by investing in both PGF Capital and Sungei Bagan 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 PGF Capital and Sungei Bagan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGF Capital Bhd and Sungei Bagan Rubber, you can compare the effects of market volatilities on PGF Capital and Sungei Bagan 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 PGF Capital with a short position of Sungei Bagan. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGF Capital and Sungei Bagan.
Diversification Opportunities for PGF Capital and Sungei Bagan
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between PGF and Sungei is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding PGF Capital Bhd and Sungei Bagan Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungei Bagan Rubber and PGF Capital 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 PGF Capital Bhd are associated (or correlated) with Sungei Bagan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungei Bagan Rubber has no effect on the direction of PGF Capital i.e., PGF Capital and Sungei Bagan go up and down completely randomly.
Pair Corralation between PGF Capital and Sungei Bagan
Assuming the 90 days trading horizon PGF Capital Bhd is expected to under-perform the Sungei Bagan. In addition to that, PGF Capital is 1.82 times more volatile than Sungei Bagan Rubber. It trades about 0.0 of its total potential returns per unit of risk. Sungei Bagan Rubber is currently generating about 0.27 per unit of volatility. If you would invest 528.00 in Sungei Bagan Rubber on October 24, 2024 and sell it today you would earn a total of 27.00 from holding Sungei Bagan Rubber or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
PGF Capital Bhd vs. Sungei Bagan Rubber
Performance |
| Timeline |
| PGF Capital Bhd |
| Sungei Bagan Rubber |
PGF Capital and Sungei Bagan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGF Capital and Sungei Bagan
The main advantage of trading using opposite PGF Capital and Sungei Bagan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGF Capital position performs unexpectedly, Sungei Bagan 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 Sungei Bagan will offset losses from the drop in Sungei Bagan's long position.| PGF Capital vs. Sungei Bagan Rubber | PGF Capital vs. Apollo Food Holdings | PGF Capital vs. IHH Healthcare Bhd | PGF Capital vs. Lyc Healthcare Bhd |
| Sungei Bagan vs. Riverview Rubber Estates | Sungei Bagan vs. Southern Steel Bhd | Sungei Bagan vs. BP Plastics Holding | Sungei Bagan vs. Daya Materials 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |