Correlation Between Senheng New and Radiant Globaltech
Can any of the company-specific risk be diversified away by investing in both Senheng New and Radiant Globaltech 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 Senheng New and Radiant Globaltech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senheng New Retail and Radiant Globaltech Bhd, you can compare the effects of market volatilities on Senheng New and Radiant Globaltech 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 Senheng New with a short position of Radiant Globaltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senheng New and Radiant Globaltech.
Diversification Opportunities for Senheng New and Radiant Globaltech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Senheng and Radiant is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Senheng New Retail and Radiant Globaltech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radiant Globaltech Bhd and Senheng New 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 Senheng New Retail are associated (or correlated) with Radiant Globaltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radiant Globaltech Bhd has no effect on the direction of Senheng New i.e., Senheng New and Radiant Globaltech go up and down completely randomly.
Pair Corralation between Senheng New and Radiant Globaltech
Assuming the 90 days trading horizon Senheng New Retail is expected to generate 1.17 times more return on investment than Radiant Globaltech. However, Senheng New is 1.17 times more volatile than Radiant Globaltech Bhd. It trades about 0.07 of its potential returns per unit of risk. Radiant Globaltech Bhd is currently generating about 0.01 per unit of risk. If you would invest 25.00 in Senheng New Retail on September 25, 2024 and sell it today you would earn a total of 2.00 from holding Senheng New Retail or generate 8.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Senheng New Retail vs. Radiant Globaltech Bhd
Performance |
Timeline |
Senheng New Retail |
Radiant Globaltech Bhd |
Senheng New and Radiant Globaltech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Senheng New and Radiant Globaltech
The main advantage of trading using opposite Senheng New and Radiant Globaltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senheng New position performs unexpectedly, Radiant Globaltech 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 Radiant Globaltech will offset losses from the drop in Radiant Globaltech's long position.Senheng New vs. Mr D I | Senheng New vs. Radiant Globaltech Bhd | Senheng New vs. Genetec Technology Bhd | Senheng New vs. FARM FRESH BERHAD |
Radiant Globaltech vs. Mr D I | Radiant Globaltech vs. Senheng New Retail | Radiant Globaltech vs. Genetec Technology Bhd | Radiant Globaltech vs. FARM FRESH BERHAD |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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