Correlation Between Al Aqar and Supercomnet Technologies
Can any of the company-specific risk be diversified away by investing in both Al Aqar and Supercomnet Technologies 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 Al Aqar and Supercomnet Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Al Aqar Healthcare and Supercomnet Technologies Bhd, you can compare the effects of market volatilities on Al Aqar and Supercomnet Technologies 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 Al Aqar with a short position of Supercomnet Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Al Aqar and Supercomnet Technologies.
Diversification Opportunities for Al Aqar and Supercomnet Technologies
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 5116 and Supercomnet is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Al Aqar Healthcare and Supercomnet Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercomnet Technologies and Al Aqar 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 Al Aqar Healthcare are associated (or correlated) with Supercomnet Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercomnet Technologies has no effect on the direction of Al Aqar i.e., Al Aqar and Supercomnet Technologies go up and down completely randomly.
Pair Corralation between Al Aqar and Supercomnet Technologies
Assuming the 90 days trading horizon Al Aqar Healthcare is expected to under-perform the Supercomnet Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Al Aqar Healthcare is 1.66 times less risky than Supercomnet Technologies. The stock trades about -0.05 of its potential returns per unit of risk. The Supercomnet Technologies Bhd is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 121.00 in Supercomnet Technologies Bhd on September 26, 2024 and sell it today you would earn a total of 15.00 from holding Supercomnet Technologies Bhd or generate 12.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Al Aqar Healthcare vs. Supercomnet Technologies Bhd
Performance |
Timeline |
Al Aqar Healthcare |
Supercomnet Technologies |
Al Aqar and Supercomnet Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Al Aqar and Supercomnet Technologies
The main advantage of trading using opposite Al Aqar and Supercomnet Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Al Aqar position performs unexpectedly, Supercomnet Technologies 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 Supercomnet Technologies will offset losses from the drop in Supercomnet Technologies' long position.Al Aqar vs. YTL Hospitality REIT | Al Aqar vs. OSK Holdings Bhd | Al Aqar vs. FARM FRESH BERHAD | Al Aqar vs. Pentamaster Bhd |
Supercomnet Technologies vs. Greatech Technology Bhd | Supercomnet Technologies vs. Uwc Bhd | Supercomnet Technologies vs. Genetec Technology Bhd | Supercomnet Technologies vs. PIE Industrial 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |