Correlation Between Aurelius Technologies and MyTech Group

Can any of the company-specific risk be diversified away by investing in both Aurelius Technologies 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 Aurelius Technologies and MyTech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aurelius Technologies Bhd and MyTech Group Bhd, you can compare the effects of market volatilities on Aurelius Technologies 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 Aurelius Technologies with a short position of MyTech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelius Technologies and MyTech Group.

Diversification Opportunities for Aurelius Technologies and MyTech Group

-0.66

Correlation Coefficient

Aurelius Technologies  MyTech Group

Excellent diversification

The 3 months correlation between Aurelius and MyTech is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Aurelius Technologies Bhd 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 Aurelius Technologies 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 Aurelius Technologies Bhd 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 Aurelius Technologies i.e., Aurelius Technologies and MyTech Group go up and down completely randomly.

Pair Corralation between Aurelius Technologies and MyTech Group

Assuming the 90 days trading horizon Aurelius Technologies Bhd is expected to generate 0.51 times more return on investment than MyTech Group. However, Aurelius Technologies Bhd is 1.97 times less risky than MyTech Group. It trades about -0.09 of its potential returns per unit of risk. MyTech Group Bhd is currently generating about -0.08 per unit of risk. If you would invest  338.00  in Aurelius Technologies Bhd on October 23, 2024 and sell it today you would lose (9.00) from holding Aurelius Technologies Bhd or give up 2.66% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Aurelius Technologies Bhd  vs.  MyTech Group Bhd

Aurelius Technologies Bhd

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aurelius Technologies Bhd are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Aurelius Technologies disclosed solid returns over the last few months and may actually be approaching a breakup point.

MyTech Group Bhd

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MyTech Group Bhd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Aurelius Technologies and MyTech Group

The main advantage of trading using opposite Aurelius Technologies and MyTech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelius Technologies 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.

The idea behind Aurelius Technologies Bhd and MyTech Group Bhd 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.