Correlation Between Press Metal and Crest Builder
Can any of the company-specific risk be diversified away by investing in both Press Metal and Crest Builder 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 Crest Builder 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 Crest Builder Holdings, you can compare the effects of market volatilities on Press Metal and Crest Builder 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 Crest Builder. Check out your portfolio center. Please also check ongoing floating volatility patterns of Press Metal and Crest Builder.
Diversification Opportunities for Press Metal and Crest Builder
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Press and Crest is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Press Metal Bhd and Crest Builder Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crest Builder Holdings 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 Crest Builder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crest Builder Holdings has no effect on the direction of Press Metal i.e., Press Metal and Crest Builder go up and down completely randomly.
Pair Corralation between Press Metal and Crest Builder
Assuming the 90 days trading horizon Press Metal Bhd is expected to generate 0.99 times more return on investment than Crest Builder. However, Press Metal Bhd is 1.01 times less risky than Crest Builder. It trades about 0.09 of its potential returns per unit of risk. Crest Builder Holdings is currently generating about -0.14 per unit of risk. If you would invest 471.00 in Press Metal Bhd on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Press Metal Bhd or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Press Metal Bhd vs. Crest Builder Holdings
Performance |
| Timeline |
| Press Metal Bhd |
| Crest Builder Holdings |
Press Metal and Crest Builder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Press Metal and Crest Builder
The main advantage of trading using opposite Press Metal and Crest Builder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Press Metal position performs unexpectedly, Crest Builder 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 Crest Builder will offset losses from the drop in Crest Builder'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 |
| Crest Builder vs. Melewar Industrial Group | Crest Builder vs. Silver Ridge Holdings | Crest Builder vs. Star Media Group | Crest Builder vs. Sunway Construction Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |