Correlation Between Globlex Holding and Amanah Leasing
Can any of the company-specific risk be diversified away by investing in both Globlex Holding and Amanah Leasing 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 Globlex Holding and Amanah Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globlex Holding Management and Amanah Leasing Public, you can compare the effects of market volatilities on Globlex Holding and Amanah Leasing 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 Globlex Holding with a short position of Amanah Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globlex Holding and Amanah Leasing.
Diversification Opportunities for Globlex Holding and Amanah Leasing
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Globlex and Amanah is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Globlex Holding Management and Amanah Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amanah Leasing Public and Globlex Holding 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 Globlex Holding Management are associated (or correlated) with Amanah Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amanah Leasing Public has no effect on the direction of Globlex Holding i.e., Globlex Holding and Amanah Leasing go up and down completely randomly.
Pair Corralation between Globlex Holding and Amanah Leasing
Assuming the 90 days trading horizon Globlex Holding Management is expected to generate 1.0 times more return on investment than Amanah Leasing. However, Globlex Holding Management is 1.0 times less risky than Amanah Leasing. It trades about 0.04 of its potential returns per unit of risk. Amanah Leasing Public is currently generating about 0.04 per unit of risk. If you would invest 94.00 in Globlex Holding Management on October 24, 2024 and sell it today you would lose (29.00) from holding Globlex Holding Management or give up 30.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globlex Holding Management vs. Amanah Leasing Public
Performance |
| Timeline |
| Globlex Holding Mana |
| Amanah Leasing Public |
Globlex Holding and Amanah Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globlex Holding and Amanah Leasing
The main advantage of trading using opposite Globlex Holding and Amanah Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globlex Holding position performs unexpectedly, Amanah Leasing 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 Amanah Leasing will offset losses from the drop in Amanah Leasing's long position.| Globlex Holding vs. Asia Plus Group | Globlex Holding vs. Eastern Commercial Leasing | Globlex Holding vs. Country Group Holdings | Globlex Holding vs. EMC Public |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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