Correlation Between Press Metal and Dufu Tech
Can any of the company-specific risk be diversified away by investing in both Press Metal 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 Press Metal and Dufu Tech 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 Dufu Tech Corp, you can compare the effects of market volatilities on Press Metal 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 Press Metal with a short position of Dufu Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Press Metal and Dufu Tech.
Diversification Opportunities for Press Metal and Dufu Tech
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Press and Dufu is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Press Metal Bhd 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 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 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 Press Metal i.e., Press Metal and Dufu Tech go up and down completely randomly.
Pair Corralation between Press Metal and Dufu Tech
Assuming the 90 days trading horizon Press Metal is expected to generate 1.19 times less return on investment than Dufu Tech. In addition to that, Press Metal is 1.32 times more volatile than Dufu Tech Corp. It trades about 0.19 of its total potential returns per unit of risk. Dufu Tech Corp is currently generating about 0.29 per unit of volatility. If you would invest 169.00 in Dufu Tech Corp on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Dufu Tech Corp or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Press Metal Bhd vs. Dufu Tech Corp
Performance |
| Timeline |
| Press Metal Bhd |
| Dufu Tech Corp |
Press Metal and Dufu Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Press Metal and Dufu Tech
The main advantage of trading using opposite Press Metal and Dufu Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Press Metal 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.| Press Metal vs. PMB Technology Bhd | Press Metal vs. Pantech Group Holdings | Press Metal vs. CSC Steel Holdings | Press Metal vs. Coraza Integrated Technology |
| Dufu Tech vs. PIE Industrial Bhd | Dufu Tech vs. Kobay Tech Bhd | Dufu Tech vs. JF Technology BHD | Dufu Tech vs. CB Industrial Product |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |