Correlation Between Radiant Globaltech and Petronas Gas
Can any of the company-specific risk be diversified away by investing in both Radiant Globaltech and Petronas Gas 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 Radiant Globaltech and Petronas Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Radiant Globaltech Bhd and Petronas Gas Bhd, you can compare the effects of market volatilities on Radiant Globaltech and Petronas Gas 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 Radiant Globaltech with a short position of Petronas Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radiant Globaltech and Petronas Gas.
Diversification Opportunities for Radiant Globaltech and Petronas Gas
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Radiant and Petronas is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Radiant Globaltech Bhd and Petronas Gas Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petronas Gas Bhd and Radiant Globaltech 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 Radiant Globaltech Bhd are associated (or correlated) with Petronas Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petronas Gas Bhd has no effect on the direction of Radiant Globaltech i.e., Radiant Globaltech and Petronas Gas go up and down completely randomly.
Pair Corralation between Radiant Globaltech and Petronas Gas
Assuming the 90 days trading horizon Radiant Globaltech Bhd is expected to generate 3.54 times more return on investment than Petronas Gas. However, Radiant Globaltech is 3.54 times more volatile than Petronas Gas Bhd. It trades about 0.03 of its potential returns per unit of risk. Petronas Gas Bhd is currently generating about -0.01 per unit of risk. If you would invest 34.00 in Radiant Globaltech Bhd on October 16, 2024 and sell it today you would earn a total of 1.00 from holding Radiant Globaltech Bhd or generate 2.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Radiant Globaltech Bhd vs. Petronas Gas Bhd
Performance |
Timeline |
Radiant Globaltech Bhd |
Petronas Gas Bhd |
Radiant Globaltech and Petronas Gas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Radiant Globaltech and Petronas Gas
The main advantage of trading using opposite Radiant Globaltech and Petronas Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radiant Globaltech position performs unexpectedly, Petronas Gas 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 Petronas Gas will offset losses from the drop in Petronas Gas' long position.Radiant Globaltech vs. Supercomnet Technologies Bhd | ||
Radiant Globaltech vs. Greatech Technology Bhd | ||
Radiant Globaltech vs. Cloudpoint Technology Berhad | ||
Radiant Globaltech vs. Petronas Chemicals Group |
Petronas Gas vs. Petronas Chemicals Group | ||
Petronas Gas vs. MI Technovation Bhd | ||
Petronas Gas vs. Aurelius Technologies Bhd | ||
Petronas Gas vs. Cloudpoint Technology 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |