Correlation Between Mycron Steel and Dufu Tech
Can any of the company-specific risk be diversified away by investing in both Mycron Steel and Dufu Tech 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 Mycron Steel and Dufu Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mycron Steel Bhd and Dufu Tech Corp, you can compare the effects of market volatilities on Mycron Steel and Dufu Tech 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 Mycron Steel with a short position of Dufu Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mycron Steel and Dufu Tech.
Diversification Opportunities for Mycron Steel and Dufu Tech
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mycron and Dufu is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mycron Steel Bhd and Dufu Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dufu Tech Corp and Mycron Steel 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 Mycron Steel Bhd are associated (or correlated) with Dufu Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dufu Tech Corp has no effect on the direction of Mycron Steel i.e., Mycron Steel and Dufu Tech go up and down completely randomly.
Pair Corralation between Mycron Steel and Dufu Tech
Assuming the 90 days trading horizon Mycron Steel Bhd is expected to under-perform the Dufu Tech. In addition to that, Mycron Steel is 1.49 times more volatile than Dufu Tech Corp. It trades about -0.01 of its total potential returns per unit of risk. Dufu Tech Corp is currently generating about 0.03 per unit of volatility. If you would invest 171.00 in Dufu Tech Corp on October 26, 2024 and sell it today you would earn a total of 4.00 from holding Dufu Tech Corp or generate 2.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.39% |
Values | Daily Returns |
Mycron Steel Bhd vs. Dufu Tech Corp
Performance |
Timeline |
Mycron Steel Bhd |
Dufu Tech Corp |
Mycron Steel and Dufu Tech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mycron Steel and Dufu Tech
The main advantage of trading using opposite Mycron Steel and Dufu Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mycron Steel position performs unexpectedly, Dufu Tech 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 Dufu Tech will offset losses from the drop in Dufu Tech's long position.Mycron Steel vs. EA Technique M | ||
Mycron Steel vs. Greatech Technology Bhd | ||
Mycron Steel vs. CPE Technology Berhad | ||
Mycron Steel vs. Dufu Tech Corp |
Dufu Tech vs. K One Technology Bhd | ||
Dufu Tech vs. Sapura Industrial Bhd | ||
Dufu Tech vs. Cloudpoint Technology Berhad | ||
Dufu Tech vs. MI Technovation 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |