Correlation Between Mercury Industries and MyTech Group
Can any of the company-specific risk be diversified away by investing in both Mercury Industries and MyTech Group 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 MyTech Group 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 MyTech Group Bhd, you can compare the effects of market volatilities on Mercury Industries and MyTech Group 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 MyTech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercury Industries and MyTech Group.
Diversification Opportunities for Mercury Industries and MyTech Group
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mercury and MyTech is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mercury Industries Bhd and MyTech Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyTech Group 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 MyTech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyTech Group Bhd has no effect on the direction of Mercury Industries i.e., Mercury Industries and MyTech Group go up and down completely randomly.
Pair Corralation between Mercury Industries and MyTech Group
Assuming the 90 days trading horizon Mercury Industries Bhd is expected to generate 1.13 times more return on investment than MyTech Group. However, Mercury Industries is 1.13 times more volatile than MyTech Group Bhd. It trades about 0.03 of its potential returns per unit of risk. MyTech Group Bhd is currently generating about -0.06 per unit of risk. If you would invest 86.00 in Mercury Industries Bhd on September 12, 2024 and sell it today you would earn a total of 6.00 from holding Mercury Industries Bhd or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Mercury Industries Bhd vs. MyTech Group Bhd
Performance |
| Timeline |
| Mercury Industries Bhd |
| MyTech Group Bhd |
Mercury Industries and MyTech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercury Industries and MyTech Group
The main advantage of trading using opposite Mercury Industries and MyTech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercury Industries position performs unexpectedly, MyTech Group 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 MyTech Group will offset losses from the drop in MyTech Group's long position.| Mercury Industries vs. Sunway Construction Group | Mercury Industries vs. PESTECH International Bhd | Mercury Industries vs. Ho Hup Construction | Mercury Industries vs. Central Industrial Corp |
| MyTech Group vs. PIE Industrial Bhd | MyTech Group vs. Kobay Tech Bhd | MyTech Group vs. JF Technology BHD | MyTech Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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