Correlation Between Mercury Industries and Protasco Bhd
Can any of the company-specific risk be diversified away by investing in both Mercury Industries 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 Mercury Industries and Protasco Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercury Industries Bhd and Protasco Bhd, you can compare the effects of market volatilities on Mercury Industries 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 Mercury Industries with a short position of Protasco Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercury Industries and Protasco Bhd.
Diversification Opportunities for Mercury Industries and Protasco Bhd
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mercury and Protasco is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mercury Industries Bhd and Protasco Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protasco Bhd and Mercury Industries 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 Mercury Industries 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 Mercury Industries i.e., Mercury Industries and Protasco Bhd go up and down completely randomly.
Pair Corralation between Mercury Industries and Protasco Bhd
Assuming the 90 days trading horizon Mercury Industries Bhd is expected to under-perform the Protasco Bhd. But the stock apears to be less risky and, when comparing its historical volatility, Mercury Industries Bhd is 3.33 times less risky than Protasco Bhd. The stock trades about -0.19 of its potential returns per unit of risk. The Protasco Bhd is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Protasco Bhd on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Protasco Bhd or generate 34.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mercury Industries Bhd vs. Protasco Bhd
Performance |
| Timeline |
| Mercury Industries Bhd |
| Protasco Bhd |
Mercury Industries and Protasco Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercury Industries and Protasco Bhd
The main advantage of trading using opposite Mercury Industries and Protasco Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercury Industries 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.| Mercury Industries vs. JAKS Resources Bhd | Mercury Industries vs. PESTECH International Bhd | Mercury Industries vs. Tadmax Resources Berhad | Mercury Industries vs. Ho Hup Construction |
| Protasco Bhd vs. Berjaya Food Bhd | Protasco Bhd vs. Mercury Industries Bhd | Protasco Bhd vs. Apollo Food Holdings | Protasco Bhd vs. CB Industrial Product |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| 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 | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |