Correlation Between Press Metal and Riverview Rubber
Can any of the company-specific risk be diversified away by investing in both Press Metal and Riverview Rubber 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 Press Metal and Riverview Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Press Metal Bhd and Riverview Rubber Estates, you can compare the effects of market volatilities on Press Metal and Riverview Rubber 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 Press Metal with a short position of Riverview Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Press Metal and Riverview Rubber.
Diversification Opportunities for Press Metal and Riverview Rubber
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Press and Riverview is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Press Metal Bhd and Riverview Rubber Estates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riverview Rubber Estates and Press Metal 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 Press Metal Bhd are associated (or correlated) with Riverview Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riverview Rubber Estates has no effect on the direction of Press Metal i.e., Press Metal and Riverview Rubber go up and down completely randomly.
Pair Corralation between Press Metal and Riverview Rubber
Assuming the 90 days trading horizon Press Metal Bhd is expected to under-perform the Riverview Rubber. In addition to that, Press Metal is 1.22 times more volatile than Riverview Rubber Estates. It trades about -0.02 of its total potential returns per unit of risk. Riverview Rubber Estates is currently generating about 0.02 per unit of volatility. If you would invest 304.00 in Riverview Rubber Estates on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Riverview Rubber Estates or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Press Metal Bhd vs. Riverview Rubber Estates
Performance |
| Timeline |
| Press Metal Bhd |
| Riverview Rubber Estates |
Press Metal and Riverview Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Press Metal and Riverview Rubber
The main advantage of trading using opposite Press Metal and Riverview Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Press Metal position performs unexpectedly, Riverview Rubber 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 Riverview Rubber will offset losses from the drop in Riverview Rubber's long position.| Press Metal vs. PMB Technology Bhd | Press Metal vs. Pantech Group Holdings | Press Metal vs. CSC Steel Holdings | Press Metal vs. Coraza Integrated Technology |
| Riverview Rubber vs. Datasonic Group Bhd | Riverview Rubber vs. Malaysia Steel Works | Riverview Rubber vs. Sungei Bagan Rubber | Riverview Rubber vs. Aeon Credit Service |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stocks Directory Find actively traded stocks across global markets |