Correlation Between MI Technovation and MyTech Group
Can any of the company-specific risk be diversified away by investing in both MI Technovation and MyTech 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 MI Technovation and MyTech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MI Technovation Bhd and MyTech Group Bhd, you can compare the effects of market volatilities on MI Technovation and MyTech 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 MI Technovation with a short position of MyTech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MI Technovation and MyTech Group.
Diversification Opportunities for MI Technovation and MyTech Group
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 5286 and MyTech is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding MI Technovation Bhd and MyTech Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyTech Group Bhd and MI Technovation 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 MI Technovation Bhd are associated (or correlated) with MyTech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyTech Group Bhd has no effect on the direction of MI Technovation i.e., MI Technovation and MyTech Group go up and down completely randomly.
Pair Corralation between MI Technovation and MyTech Group
Assuming the 90 days trading horizon MI Technovation Bhd is expected to generate 0.71 times more return on investment than MyTech Group. However, MI Technovation Bhd is 1.41 times less risky than MyTech Group. It trades about 0.09 of its potential returns per unit of risk. MyTech Group Bhd is currently generating about -0.01 per unit of risk. If you would invest 193.00 in MI Technovation Bhd on September 23, 2024 and sell it today you would earn a total of 24.00 from holding MI Technovation Bhd or generate 12.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
MI Technovation Bhd vs. MyTech Group Bhd
Performance |
Timeline |
MI Technovation Bhd |
MyTech Group Bhd |
MI Technovation and MyTech Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MI Technovation and MyTech Group
The main advantage of trading using opposite MI Technovation and MyTech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MI Technovation position performs unexpectedly, MyTech 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 MyTech Group will offset losses from the drop in MyTech Group's long position.MI Technovation vs. Inari Amertron Bhd | MI Technovation vs. ViTrox Bhd | MI Technovation vs. Globetronics Tech Bhd |
MyTech Group vs. Greatech Technology Bhd | MyTech Group vs. Uwc Bhd | MyTech Group vs. Genetec Technology Bhd | MyTech Group 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |