Correlation Between Tenaga Nasional and Daya Materials
Can any of the company-specific risk be diversified away by investing in both Tenaga Nasional and Daya Materials 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 Tenaga Nasional and Daya Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenaga Nasional Bhd and Daya Materials Bhd, you can compare the effects of market volatilities on Tenaga Nasional and Daya Materials 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 Tenaga Nasional with a short position of Daya Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaga Nasional and Daya Materials.
Diversification Opportunities for Tenaga Nasional and Daya Materials
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tenaga and Daya is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Tenaga Nasional Bhd and Daya Materials Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daya Materials Bhd and Tenaga Nasional 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 Tenaga Nasional Bhd are associated (or correlated) with Daya Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daya Materials Bhd has no effect on the direction of Tenaga Nasional i.e., Tenaga Nasional and Daya Materials go up and down completely randomly.
Pair Corralation between Tenaga Nasional and Daya Materials
Assuming the 90 days trading horizon Tenaga Nasional Bhd is expected to generate 0.3 times more return on investment than Daya Materials. However, Tenaga Nasional Bhd is 3.34 times less risky than Daya Materials. It trades about 0.14 of its potential returns per unit of risk. Daya Materials Bhd is currently generating about -0.01 per unit of risk. If you would invest 1,001 in Tenaga Nasional Bhd on October 7, 2024 and sell it today you would earn a total of 459.00 from holding Tenaga Nasional Bhd or generate 45.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tenaga Nasional Bhd vs. Daya Materials Bhd
Performance |
Timeline |
Tenaga Nasional Bhd |
Daya Materials Bhd |
Tenaga Nasional and Daya Materials Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tenaga Nasional and Daya Materials
The main advantage of trading using opposite Tenaga Nasional and Daya Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaga Nasional position performs unexpectedly, Daya Materials 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 Daya Materials will offset losses from the drop in Daya Materials' long position.Tenaga Nasional vs. K One Technology Bhd | Tenaga Nasional vs. Magni Tech Industries | Tenaga Nasional vs. ES Ceramics Technology | Tenaga Nasional vs. YX Precious Metals |
Daya Materials vs. Icon Offshore Bhd | Daya Materials vs. Barakah Offshore Petroleum | Daya Materials vs. Minetech Resources Bhd | Daya Materials vs. Tambun Indah Land |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |