Correlation Between Public Packages and Choo Bee
Can any of the company-specific risk be diversified away by investing in both Public Packages and Choo Bee 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 Choo Bee 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 Choo Bee Metal, you can compare the effects of market volatilities on Public Packages and Choo Bee 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 Choo Bee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Packages and Choo Bee.
Diversification Opportunities for Public Packages and Choo Bee
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Public and Choo is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Public Packages Holdings and Choo Bee Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choo Bee Metal 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 Choo Bee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choo Bee Metal has no effect on the direction of Public Packages i.e., Public Packages and Choo Bee go up and down completely randomly.
Pair Corralation between Public Packages and Choo Bee
Assuming the 90 days trading horizon Public Packages Holdings is expected to generate 1.05 times more return on investment than Choo Bee. However, Public Packages is 1.05 times more volatile than Choo Bee Metal. It trades about 0.04 of its potential returns per unit of risk. Choo Bee Metal is currently generating about -0.02 per unit of risk. If you would invest 62.00 in Public Packages Holdings on September 16, 2024 and sell it today you would earn a total of 22.00 from holding Public Packages Holdings or generate 35.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Public Packages Holdings vs. Choo Bee Metal
Performance |
| Timeline |
| Public Packages Holdings |
| Choo Bee Metal |
Public Packages and Choo Bee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Packages and Choo Bee
The main advantage of trading using opposite Public Packages and Choo Bee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Packages position performs unexpectedly, Choo Bee 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 Choo Bee will offset losses from the drop in Choo Bee'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 |
| Choo Bee vs. Press Metal Bhd | Choo Bee vs. PMB Technology Bhd | Choo Bee vs. Pantech Group Holdings | Choo Bee vs. CSC Steel Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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