Correlation Between Globetronics Tech and Insas Bhd

Can any of the company-specific risk be diversified away by investing in both Globetronics Tech and Insas Bhd 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 Globetronics Tech and Insas Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Globetronics Tech and Insas Bhd

0.69

Correlation Coefficient

Globetronics Tech  Insas Bhd

Poor diversification

The 3 months correlation between Globetronics and Insas is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Globetronics Tech Bhd and Insas Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insas Bhd and Globetronics Tech 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 Globetronics Tech Bhd are associated (or correlated) with Insas Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insas Bhd has no effect on the direction of Globetronics Tech i.e., Globetronics Tech and Insas Bhd go up and down completely randomly.

Pair Corralation between Globetronics Tech and Insas Bhd

Assuming the 90 days trading horizon Globetronics Tech Bhd is expected to under-perform the Insas Bhd. In addition to that, Globetronics Tech is 2.96 times more volatile than Insas Bhd. It trades about -0.23 of its total potential returns per unit of risk. Insas Bhd is currently generating about -0.1 per unit of volatility. If you would invest  90.00  in Insas Bhd on December 1, 2024 and sell it today you would lose (5.00) from holding Insas Bhd or give up 5.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Globetronics Tech Bhd  vs.  Insas Bhd

Globetronics Tech Bhd

Risk-Adjusted Performance

Very Weak

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

Insas Bhd

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Globetronics Tech and Insas Bhd

The main advantage of trading using opposite Globetronics Tech and Insas Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globetronics Tech position performs unexpectedly, Insas Bhd 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 Insas Bhd will offset losses from the drop in Insas Bhd's long position.

The idea behind Globetronics Tech Bhd and Insas 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.