Correlation Between Pantech Group and Tadmax Resources

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Can any of the company-specific risk be diversified away by investing in both Pantech Group and Tadmax Resources 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 Pantech Group and Tadmax Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pantech Group Holdings and Tadmax Resources Berhad, you can compare the effects of market volatilities on Pantech Group and Tadmax Resources 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 Pantech Group with a short position of Tadmax Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pantech Group and Tadmax Resources.

Diversification Opportunities for Pantech Group and Tadmax Resources

-0.04
  Correlation Coefficient

Good diversification

The 3 months correlation between Pantech and Tadmax is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Pantech Group Holdings and Tadmax Resources Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tadmax Resources Berhad and Pantech Group 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 Pantech Group Holdings are associated (or correlated) with Tadmax Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tadmax Resources Berhad has no effect on the direction of Pantech Group i.e., Pantech Group and Tadmax Resources go up and down completely randomly.

Pair Corralation between Pantech Group and Tadmax Resources

Assuming the 90 days trading horizon Pantech Group Holdings is expected to generate 0.4 times more return on investment than Tadmax Resources. However, Pantech Group Holdings is 2.53 times less risky than Tadmax Resources. It trades about 0.0 of its potential returns per unit of risk. Tadmax Resources Berhad is currently generating about -0.08 per unit of risk. If you would invest  93.00  in Pantech Group Holdings on October 22, 2024 and sell it today you would earn a total of  0.00  from holding Pantech Group Holdings or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.0%
ValuesDaily Returns

Pantech Group Holdings  vs.  Tadmax Resources Berhad

 Performance 
       Timeline  
Pantech Group Holdings 

Risk-Adjusted Performance

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Strong
Very Weak
Over the last 90 days Pantech Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Pantech Group is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
Tadmax Resources Berhad 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Tadmax Resources Berhad has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pantech Group and Tadmax Resources Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Pantech Group and Tadmax Resources

The main advantage of trading using opposite Pantech Group and Tadmax Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pantech Group position performs unexpectedly, Tadmax Resources 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 Tadmax Resources will offset losses from the drop in Tadmax Resources' long position.
The idea behind Pantech Group Holdings and Tadmax Resources Berhad pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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