Correlation Between Greatech Technology and RHB Bank
Can any of the company-specific risk be diversified away by investing in both Greatech Technology and RHB Bank 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 Greatech Technology and RHB Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greatech Technology Bhd and RHB Bank Bhd, you can compare the effects of market volatilities on Greatech Technology and RHB Bank 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 Greatech Technology with a short position of RHB Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greatech Technology and RHB Bank.
Diversification Opportunities for Greatech Technology and RHB Bank
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Greatech and RHB is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Greatech Technology Bhd and RHB Bank Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RHB Bank Bhd and Greatech Technology 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 Greatech Technology Bhd are associated (or correlated) with RHB Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RHB Bank Bhd has no effect on the direction of Greatech Technology i.e., Greatech Technology and RHB Bank go up and down completely randomly.
Pair Corralation between Greatech Technology and RHB Bank
Assuming the 90 days trading horizon Greatech Technology Bhd is expected to generate 1.65 times more return on investment than RHB Bank. However, Greatech Technology is 1.65 times more volatile than RHB Bank Bhd. It trades about 0.19 of its potential returns per unit of risk. RHB Bank Bhd is currently generating about -0.11 per unit of risk. If you would invest 212.00 in Greatech Technology Bhd on September 26, 2024 and sell it today you would earn a total of 16.00 from holding Greatech Technology Bhd or generate 7.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Greatech Technology Bhd vs. RHB Bank Bhd
Performance |
Timeline |
Greatech Technology Bhd |
RHB Bank Bhd |
Greatech Technology and RHB Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Greatech Technology and RHB Bank
The main advantage of trading using opposite Greatech Technology and RHB Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greatech Technology position performs unexpectedly, RHB Bank 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 RHB Bank will offset losses from the drop in RHB Bank's long position.Greatech Technology vs. Uwc Bhd | Greatech Technology vs. Genetec Technology Bhd | Greatech Technology vs. PIE Industrial Bhd | Greatech Technology vs. Dufu Tech Corp |
RHB Bank vs. Malayan Banking Bhd | RHB Bank vs. Public Bank Bhd | RHB Bank vs. Hong Leong Bank | RHB Bank vs. Genetec Technology 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |