Correlation Between Press Metal and Insas Bhd
Can any of the company-specific risk be diversified away by investing in both Press Metal and Insas Bhd 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 Insas Bhd 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 Insas Bhd, you can compare the effects of market volatilities on Press Metal and Insas Bhd 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 Insas Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Press Metal and Insas Bhd.
Diversification Opportunities for Press Metal and Insas Bhd
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Press and Insas is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Press Metal Bhd and Insas Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insas Bhd 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 Insas Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insas Bhd has no effect on the direction of Press Metal i.e., Press Metal and Insas Bhd go up and down completely randomly.
Pair Corralation between Press Metal and Insas Bhd
Assuming the 90 days trading horizon Press Metal Bhd is expected to generate 1.53 times more return on investment than Insas Bhd. However, Press Metal is 1.53 times more volatile than Insas Bhd. It trades about 0.0 of its potential returns per unit of risk. Insas Bhd is currently generating about -0.18 per unit of risk. If you would invest 473.00 in Press Metal Bhd on August 30, 2024 and sell it today you would lose (3.00) from holding Press Metal Bhd or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Press Metal Bhd vs. Insas Bhd
Performance |
| Timeline |
| Press Metal Bhd |
| Insas Bhd |
Press Metal and Insas Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Press Metal and Insas Bhd
The main advantage of trading using opposite Press Metal and Insas Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Press Metal position performs unexpectedly, Insas Bhd 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 Insas Bhd will offset losses from the drop in Insas Bhd's long position.| Press Metal vs. Diversified Gateway Solutions | Press Metal vs. YX Precious Metals | Press Metal vs. K One Technology Bhd | Press Metal vs. Computer Forms Bhd |
| Insas Bhd vs. Leader Steel Holdings | Insas Bhd vs. Press Metal Bhd | Insas Bhd vs. Shangri La Hotels | Insas Bhd vs. Ho Hup Construction |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |