Correlation Between Lysaght Galvanized and Bina Darulaman
Can any of the company-specific risk be diversified away by investing in both Lysaght Galvanized and Bina Darulaman 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 Lysaght Galvanized and Bina Darulaman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lysaght Galvanized Steel and Bina Darulaman Bhd, you can compare the effects of market volatilities on Lysaght Galvanized and Bina Darulaman 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 Lysaght Galvanized with a short position of Bina Darulaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lysaght Galvanized and Bina Darulaman.
Diversification Opportunities for Lysaght Galvanized and Bina Darulaman
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lysaght and Bina is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Lysaght Galvanized Steel and Bina Darulaman Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bina Darulaman Bhd and Lysaght Galvanized 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 Lysaght Galvanized Steel are associated (or correlated) with Bina Darulaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bina Darulaman Bhd has no effect on the direction of Lysaght Galvanized i.e., Lysaght Galvanized and Bina Darulaman go up and down completely randomly.
Pair Corralation between Lysaght Galvanized and Bina Darulaman
Assuming the 90 days trading horizon Lysaght Galvanized Steel is expected to generate 2.43 times more return on investment than Bina Darulaman. However, Lysaght Galvanized is 2.43 times more volatile than Bina Darulaman Bhd. It trades about 0.17 of its potential returns per unit of risk. Bina Darulaman Bhd is currently generating about -0.11 per unit of risk. If you would invest 234.00 in Lysaght Galvanized Steel on August 31, 2024 and sell it today you would earn a total of 49.00 from holding Lysaght Galvanized Steel or generate 20.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lysaght Galvanized Steel vs. Bina Darulaman Bhd
Performance |
| Timeline |
| Lysaght Galvanized Steel |
| Bina Darulaman Bhd |
Lysaght Galvanized and Bina Darulaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lysaght Galvanized and Bina Darulaman
The main advantage of trading using opposite Lysaght Galvanized and Bina Darulaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lysaght Galvanized position performs unexpectedly, Bina Darulaman 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 Bina Darulaman will offset losses from the drop in Bina Darulaman's long position.| Lysaght Galvanized vs. Eversafe Rubber Bhd | Lysaght Galvanized vs. Senheng New Retail | Lysaght Galvanized vs. Media Prima Bhd | Lysaght Galvanized vs. Kluang Rubber |
| Bina Darulaman vs. Cosmos Technology International | Bina Darulaman vs. Carlsberg Brewery Malaysia | Bina Darulaman vs. Computer Forms Bhd | Bina Darulaman vs. Minetech Resources Bhd |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |