Correlation Between Berjaya Food and Versatile Creative
Can any of the company-specific risk be diversified away by investing in both Berjaya Food and Versatile Creative 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 Berjaya Food and Versatile Creative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berjaya Food Bhd and Versatile Creative Bhd, you can compare the effects of market volatilities on Berjaya Food and Versatile Creative 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 Berjaya Food with a short position of Versatile Creative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berjaya Food and Versatile Creative.
Diversification Opportunities for Berjaya Food and Versatile Creative
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Berjaya and Versatile is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Berjaya Food Bhd and Versatile Creative Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Versatile Creative Bhd and Berjaya Food 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 Berjaya Food Bhd are associated (or correlated) with Versatile Creative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Versatile Creative Bhd has no effect on the direction of Berjaya Food i.e., Berjaya Food and Versatile Creative go up and down completely randomly.
Pair Corralation between Berjaya Food and Versatile Creative
Assuming the 90 days trading horizon Berjaya Food Bhd is expected to under-perform the Versatile Creative. In addition to that, Berjaya Food is 2.29 times more volatile than Versatile Creative Bhd. It trades about 0.0 of its total potential returns per unit of risk. Versatile Creative Bhd is currently generating about 0.09 per unit of volatility. If you would invest 64.00 in Versatile Creative Bhd on September 26, 2024 and sell it today you would earn a total of 6.00 from holding Versatile Creative Bhd or generate 9.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Berjaya Food Bhd vs. Versatile Creative Bhd
Performance |
Timeline |
Berjaya Food Bhd |
Versatile Creative Bhd |
Berjaya Food and Versatile Creative Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Berjaya Food and Versatile Creative
The main advantage of trading using opposite Berjaya Food and Versatile Creative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berjaya Food position performs unexpectedly, Versatile Creative 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 Versatile Creative will offset losses from the drop in Versatile Creative's long position.Berjaya Food vs. Genting Malaysia Bhd | Berjaya Food vs. Shangri La Hotels | Berjaya Food vs. ECM Libra Financial | Berjaya Food vs. Lyc Healthcare Bhd |
Versatile Creative vs. Senheng New Retail | Versatile Creative vs. Apex Healthcare Bhd | Versatile Creative vs. Cengild Medical Berhad | Versatile Creative vs. Berjaya Food 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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