Correlation Between Dagang Nexchange and Datasonic Group
Can any of the company-specific risk be diversified away by investing in both Dagang Nexchange and Datasonic Group 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 Dagang Nexchange and Datasonic Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dagang Nexchange Bhd and Datasonic Group Bhd, you can compare the effects of market volatilities on Dagang Nexchange and Datasonic Group 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 Dagang Nexchange with a short position of Datasonic Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dagang Nexchange and Datasonic Group.
Diversification Opportunities for Dagang Nexchange and Datasonic Group
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dagang and Datasonic is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dagang Nexchange Bhd and Datasonic Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datasonic Group Bhd and Dagang Nexchange 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 Dagang Nexchange Bhd are associated (or correlated) with Datasonic Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datasonic Group Bhd has no effect on the direction of Dagang Nexchange i.e., Dagang Nexchange and Datasonic Group go up and down completely randomly.
Pair Corralation between Dagang Nexchange and Datasonic Group
Assuming the 90 days trading horizon Dagang Nexchange Bhd is expected to generate 1.38 times more return on investment than Datasonic Group. However, Dagang Nexchange is 1.38 times more volatile than Datasonic Group Bhd. It trades about 0.06 of its potential returns per unit of risk. Datasonic Group Bhd is currently generating about -0.06 per unit of risk. If you would invest 35.00 in Dagang Nexchange Bhd on September 23, 2024 and sell it today you would earn a total of 3.00 from holding Dagang Nexchange Bhd or generate 8.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Dagang Nexchange Bhd vs. Datasonic Group Bhd
Performance |
Timeline |
Dagang Nexchange Bhd |
Datasonic Group Bhd |
Dagang Nexchange and Datasonic Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dagang Nexchange and Datasonic Group
The main advantage of trading using opposite Dagang Nexchange and Datasonic Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dagang Nexchange position performs unexpectedly, Datasonic Group 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 Datasonic Group will offset losses from the drop in Datasonic Group's long position.Dagang Nexchange vs. Datasonic Group Bhd | Dagang Nexchange vs. Awanbiru Technology Bhd | Dagang Nexchange vs. Dataprep Holdings Bhd | Dagang Nexchange vs. Systech Bhd |
Datasonic Group vs. Dagang Nexchange Bhd | Datasonic Group vs. Awanbiru Technology Bhd | Datasonic Group vs. Dataprep Holdings Bhd | Datasonic Group vs. Systech 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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