Correlation Between Bukit Jalil and Centurion Acquisition
Can any of the company-specific risk be diversified away by investing in both Bukit Jalil and Centurion Acquisition 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 Bukit Jalil and Centurion Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bukit Jalil Global and Centurion Acquisition Corp, you can compare the effects of market volatilities on Bukit Jalil and Centurion Acquisition 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 Bukit Jalil with a short position of Centurion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukit Jalil and Centurion Acquisition.
Diversification Opportunities for Bukit Jalil and Centurion Acquisition
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bukit and Centurion is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Jalil Global and Centurion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centurion Acquisition and Bukit Jalil 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 Bukit Jalil Global are associated (or correlated) with Centurion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centurion Acquisition has no effect on the direction of Bukit Jalil i.e., Bukit Jalil and Centurion Acquisition go up and down completely randomly.
Pair Corralation between Bukit Jalil and Centurion Acquisition
Assuming the 90 days horizon Bukit Jalil Global is expected to generate 147.26 times more return on investment than Centurion Acquisition. However, Bukit Jalil is 147.26 times more volatile than Centurion Acquisition Corp. It trades about 0.29 of its potential returns per unit of risk. Centurion Acquisition Corp is currently generating about 0.12 per unit of risk. If you would invest 11.00 in Bukit Jalil Global on December 5, 2024 and sell it today you would earn a total of 6.00 from holding Bukit Jalil Global or generate 54.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 57.14% |
Values | Daily Returns |
Bukit Jalil Global vs. Centurion Acquisition Corp
Performance |
Timeline |
Bukit Jalil Global |
Centurion Acquisition |
Bukit Jalil and Centurion Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bukit Jalil and Centurion Acquisition
The main advantage of trading using opposite Bukit Jalil and Centurion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukit Jalil position performs unexpectedly, Centurion Acquisition 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 Centurion Acquisition will offset losses from the drop in Centurion Acquisition's long position.Bukit Jalil vs. Palomar Holdings | Bukit Jalil vs. Cansortium | Bukit Jalil vs. Pekin Life Insurance | Bukit Jalil vs. MGP Ingredients |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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