Correlation Between Sunway Construction and Nexgram Holdings
Can any of the company-specific risk be diversified away by investing in both Sunway Construction and Nexgram Holdings 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 Sunway Construction and Nexgram Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunway Construction Group and Nexgram Holdings Bhd, you can compare the effects of market volatilities on Sunway Construction and Nexgram Holdings 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 Sunway Construction with a short position of Nexgram Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunway Construction and Nexgram Holdings.
Diversification Opportunities for Sunway Construction and Nexgram Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunway and Nexgram is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sunway Construction Group and Nexgram Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexgram Holdings Bhd and Sunway Construction 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 Sunway Construction Group are associated (or correlated) with Nexgram Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexgram Holdings Bhd has no effect on the direction of Sunway Construction i.e., Sunway Construction and Nexgram Holdings go up and down completely randomly.
Pair Corralation between Sunway Construction and Nexgram Holdings
Assuming the 90 days trading horizon Sunway Construction is expected to generate 16.71 times less return on investment than Nexgram Holdings. But when comparing it to its historical volatility, Sunway Construction Group is 8.26 times less risky than Nexgram Holdings. It trades about 0.04 of its potential returns per unit of risk. Nexgram Holdings Bhd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1.50 in Nexgram Holdings Bhd on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Nexgram Holdings Bhd or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
Sunway Construction Group vs. Nexgram Holdings Bhd
Performance |
Timeline |
Sunway Construction |
Nexgram Holdings Bhd |
Sunway Construction and Nexgram Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sunway Construction and Nexgram Holdings
The main advantage of trading using opposite Sunway Construction and Nexgram Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunway Construction position performs unexpectedly, Nexgram Holdings 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 Nexgram Holdings will offset losses from the drop in Nexgram Holdings' long position.Sunway Construction vs. ES Ceramics Technology | Sunway Construction vs. MI Technovation Bhd | Sunway Construction vs. Diversified Gateway Solutions | Sunway Construction vs. MClean Technologies Bhd |
Nexgram Holdings vs. M N C | Nexgram Holdings vs. Hartalega Holdings Bhd | Nexgram Holdings vs. Pentamaster Bhd | Nexgram Holdings vs. Sunway Construction Group |
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.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |