Correlation Between Dufu Tech and MyTech Group
Can any of the company-specific risk be diversified away by investing in both Dufu Tech 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 Dufu Tech and MyTech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dufu Tech Corp and MyTech Group Bhd, you can compare the effects of market volatilities on Dufu Tech 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 Dufu Tech with a short position of MyTech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dufu Tech and MyTech Group.
Diversification Opportunities for Dufu Tech and MyTech Group
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dufu and MyTech is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dufu Tech Corp 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 Dufu Tech 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 Dufu Tech Corp 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 Dufu Tech i.e., Dufu Tech and MyTech Group go up and down completely randomly.
Pair Corralation between Dufu Tech and MyTech Group
Assuming the 90 days trading horizon Dufu Tech Corp is expected to generate 0.54 times more return on investment than MyTech Group. However, Dufu Tech Corp is 1.85 times less risky than MyTech Group. It trades about 0.02 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 183.00 in Dufu Tech Corp on September 24, 2024 and sell it today you would earn a total of 2.00 from holding Dufu Tech Corp or generate 1.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Dufu Tech Corp vs. MyTech Group Bhd
Performance |
Timeline |
Dufu Tech Corp |
MyTech Group Bhd |
Dufu Tech and MyTech Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dufu Tech and MyTech Group
The main advantage of trading using opposite Dufu Tech and MyTech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dufu Tech 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.Dufu Tech vs. Aeon Credit Service | Dufu Tech vs. Resintech Bhd | Dufu Tech vs. Alliance Financial Group | Dufu Tech vs. FARM FRESH BERHAD |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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