Correlation Between Public Packages and Awanbiru Technology
Can any of the company-specific risk be diversified away by investing in both Public Packages and Awanbiru Technology 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 Public Packages and Awanbiru Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Packages Holdings and Awanbiru Technology Bhd, you can compare the effects of market volatilities on Public Packages and Awanbiru Technology 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 Public Packages with a short position of Awanbiru Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Packages and Awanbiru Technology.
Diversification Opportunities for Public Packages and Awanbiru Technology
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Public and Awanbiru is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Public Packages Holdings and Awanbiru Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awanbiru Technology Bhd and Public Packages 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 Public Packages Holdings are associated (or correlated) with Awanbiru Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awanbiru Technology Bhd has no effect on the direction of Public Packages i.e., Public Packages and Awanbiru Technology go up and down completely randomly.
Pair Corralation between Public Packages and Awanbiru Technology
Assuming the 90 days trading horizon Public Packages is expected to generate 1.67 times less return on investment than Awanbiru Technology. But when comparing it to its historical volatility, Public Packages Holdings is 2.69 times less risky than Awanbiru Technology. It trades about 0.04 of its potential returns per unit of risk. Awanbiru Technology Bhd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 40.00 in Awanbiru Technology Bhd on September 16, 2024 and sell it today you would lose (5.00) from holding Awanbiru Technology Bhd or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Public Packages Holdings vs. Awanbiru Technology Bhd
Performance |
| Timeline |
| Public Packages Holdings |
| Awanbiru Technology Bhd |
Public Packages and Awanbiru Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Packages and Awanbiru Technology
The main advantage of trading using opposite Public Packages and Awanbiru Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Packages position performs unexpectedly, Awanbiru Technology 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 Awanbiru Technology will offset losses from the drop in Awanbiru Technology's long position.| Public Packages vs. Malayan Banking Bhd | Public Packages vs. Public Bank Bhd | Public Packages vs. Petronas Chemicals Group | Public Packages vs. Tenaga Nasional Bhd |
| Awanbiru Technology vs. Datasonic Group Bhd | Awanbiru Technology vs. Dataprep Holdings Bhd | Awanbiru Technology vs. Systech Bhd | Awanbiru Technology vs. TechnoDex 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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