Correlation Between Scientex Bhd and Axiata Group
Can any of the company-specific risk be diversified away by investing in both Scientex Bhd and Axiata 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 Scientex Bhd and Axiata Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientex Bhd and Axiata Group Bhd, you can compare the effects of market volatilities on Scientex Bhd and Axiata 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 Scientex Bhd with a short position of Axiata Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientex Bhd and Axiata Group.
Diversification Opportunities for Scientex Bhd and Axiata Group
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Scientex and Axiata is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Scientex Bhd and Axiata Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axiata Group Bhd and Scientex Bhd 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 Scientex Bhd are associated (or correlated) with Axiata Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axiata Group Bhd has no effect on the direction of Scientex Bhd i.e., Scientex Bhd and Axiata Group go up and down completely randomly.
Pair Corralation between Scientex Bhd and Axiata Group
Assuming the 90 days trading horizon Scientex Bhd is expected to under-perform the Axiata Group. But the stock apears to be less risky and, when comparing its historical volatility, Scientex Bhd is 1.05 times less risky than Axiata Group. The stock trades about -0.3 of its potential returns per unit of risk. The Axiata Group Bhd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 233.00 in Axiata Group Bhd on September 24, 2024 and sell it today you would earn a total of 1.00 from holding Axiata Group Bhd or generate 0.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Scientex Bhd vs. Axiata Group Bhd
Performance |
Timeline |
Scientex Bhd |
Axiata Group Bhd |
Scientex Bhd and Axiata Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Scientex Bhd and Axiata Group
The main advantage of trading using opposite Scientex Bhd and Axiata Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientex Bhd position performs unexpectedly, Axiata 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 Axiata Group will offset losses from the drop in Axiata Group's long position.Scientex Bhd vs. Apollo Food Holdings | Scientex Bhd vs. K One Technology Bhd | Scientex Bhd vs. PIE Industrial Bhd | Scientex Bhd vs. Kawan Food Bhd |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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