Correlation Between Public Packages and Dufu Tech
Can any of the company-specific risk be diversified away by investing in both Public Packages and Dufu Tech 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 Dufu Tech 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 Dufu Tech Corp, you can compare the effects of market volatilities on Public Packages and Dufu Tech 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 Dufu Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Packages and Dufu Tech.
Diversification Opportunities for Public Packages and Dufu Tech
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Public and Dufu is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Public Packages Holdings and Dufu Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dufu Tech Corp 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 Dufu Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dufu Tech Corp has no effect on the direction of Public Packages i.e., Public Packages and Dufu Tech go up and down completely randomly.
Pair Corralation between Public Packages and Dufu Tech
Assuming the 90 days trading horizon Public Packages Holdings is expected to generate 0.96 times more return on investment than Dufu Tech. However, Public Packages Holdings is 1.04 times less risky than Dufu Tech. It trades about -0.04 of its potential returns per unit of risk. Dufu Tech Corp is currently generating about -0.26 per unit of risk. If you would invest 84.00 in Public Packages Holdings on October 16, 2024 and sell it today you would lose (1.00) from holding Public Packages Holdings or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Public Packages Holdings vs. Dufu Tech Corp
Performance |
| Timeline |
| Public Packages Holdings |
| Dufu Tech Corp |
Public Packages and Dufu Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Packages and Dufu Tech
The main advantage of trading using opposite Public Packages and Dufu Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Packages position performs unexpectedly, Dufu Tech 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 Dufu Tech will offset losses from the drop in Dufu Tech's long position.| Public Packages vs. Kawan Food Bhd | Public Packages vs. Nova Wellness Group | Public Packages vs. Tex Cycle Technology | Public Packages vs. Cosmos Technology International |
| Dufu Tech vs. K One Technology Bhd | Dufu Tech vs. Senheng New Retail | Dufu Tech vs. Kluang Rubber | Dufu Tech vs. Public Packages 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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