Correlation Between Press Metal and Mr D
Can any of the company-specific risk be diversified away by investing in both Press Metal and Mr D 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 Mr D 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 Mr D I, you can compare the effects of market volatilities on Press Metal and Mr D 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 Mr D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Press Metal and Mr D.
Diversification Opportunities for Press Metal and Mr D
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Press and 5296 is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Press Metal Bhd and Mr D I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mr D I 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 Mr D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mr D I has no effect on the direction of Press Metal i.e., Press Metal and Mr D go up and down completely randomly.
Pair Corralation between Press Metal and Mr D
Assuming the 90 days trading horizon Press Metal Bhd is expected to generate 0.81 times more return on investment than Mr D. However, Press Metal Bhd is 1.23 times less risky than Mr D. It trades about 0.01 of its potential returns per unit of risk. Mr D I is currently generating about -0.01 per unit of risk. If you would invest 468.00 in Press Metal Bhd on December 4, 2024 and sell it today you would earn a total of 24.00 from holding Press Metal Bhd or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Press Metal Bhd vs. Mr D I
Performance |
| Timeline |
| Press Metal Bhd |
| Mr D I |
Press Metal and Mr D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Press Metal and Mr D
The main advantage of trading using opposite Press Metal and Mr D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Press Metal position performs unexpectedly, Mr D 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 Mr D will offset losses from the drop in Mr D's long position.| Press Metal vs. Star Media Group | Press Metal vs. Apollo Food Holdings | Press Metal vs. Steel Hawk Berhad | Press Metal vs. Sports Toto Berhad |
| Mr D vs. Lysaght Galvanized Steel | Mr D vs. Aeon Credit Service | Mr D vs. Icon Offshore Bhd | Mr D vs. Sports Toto Berhad |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |