Correlation Between Pesona Metro and Ho Hup
Can any of the company-specific risk be diversified away by investing in both Pesona Metro and Ho Hup 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 Pesona Metro and Ho Hup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pesona Metro Holdings and Ho Hup Construction, you can compare the effects of market volatilities on Pesona Metro and Ho Hup 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 Pesona Metro with a short position of Ho Hup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pesona Metro and Ho Hup.
Diversification Opportunities for Pesona Metro and Ho Hup
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pesona and 5169 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Pesona Metro Holdings and Ho Hup Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ho Hup Construction and Pesona Metro 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 Pesona Metro Holdings are associated (or correlated) with Ho Hup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ho Hup Construction has no effect on the direction of Pesona Metro i.e., Pesona Metro and Ho Hup go up and down completely randomly.
Pair Corralation between Pesona Metro and Ho Hup
Assuming the 90 days trading horizon Pesona Metro Holdings is expected to generate 0.65 times more return on investment than Ho Hup. However, Pesona Metro Holdings is 1.54 times less risky than Ho Hup. It trades about 0.08 of its potential returns per unit of risk. Ho Hup Construction is currently generating about 0.0 per unit of risk. If you would invest 17.00 in Pesona Metro Holdings on September 3, 2024 and sell it today you would earn a total of 11.00 from holding Pesona Metro Holdings or generate 64.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pesona Metro Holdings vs. Ho Hup Construction
Performance |
| Timeline |
| Pesona Metro Holdings |
| Ho Hup Construction |
Pesona Metro and Ho Hup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pesona Metro and Ho Hup
The main advantage of trading using opposite Pesona Metro and Ho Hup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pesona Metro position performs unexpectedly, Ho Hup 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 Ho Hup will offset losses from the drop in Ho Hup's long position.| Pesona Metro vs. Sunway Construction Group | Pesona Metro vs. Ho Hup Construction | Pesona Metro vs. Central Industrial Corp |
| Ho Hup vs. Binasat Communications Bhd | Ho Hup vs. Dataprep Holdings Bhd | Ho Hup vs. Lyc Healthcare Bhd | Ho Hup vs. Apex Healthcare 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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