Correlation Between Bukit Jalil and Dreyfus Research

Can any of the company-specific risk be diversified away by investing in both Bukit Jalil and Dreyfus Research 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 Dreyfus Research 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 Dreyfus Research Growth, you can compare the effects of market volatilities on Bukit Jalil and Dreyfus Research 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 Dreyfus Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukit Jalil and Dreyfus Research.

Diversification Opportunities for Bukit Jalil and Dreyfus Research

-0.2

Correlation Coefficient

Bukit Jalil  Dreyfus Research

Good diversification

The 3 months correlation between Bukit and Dreyfus is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Jalil Global and Dreyfus Research Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Research Growth 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 Dreyfus Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Research Growth has no effect on the direction of Bukit Jalil i.e., Bukit Jalil and Dreyfus Research go up and down completely randomly.

Pair Corralation between Bukit Jalil and Dreyfus Research

Assuming the 90 days horizon Bukit Jalil Global is expected to generate 48.86 times more return on investment than Dreyfus Research. However, Bukit Jalil is 48.86 times more volatile than Dreyfus Research Growth. It trades about 0.12 of its potential returns per unit of risk. Dreyfus Research Growth is currently generating about -0.02 per unit of risk. If you would invest  4.40  in Bukit Jalil Global on October 22, 2024 and sell it today you would lose (1.67) from holding Bukit Jalil Global or give up 37.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	64.1%
Values	Daily Returns

Bukit Jalil Global  vs.  Dreyfus Research Growth

Bukit Jalil Global

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bukit Jalil Global are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Bukit Jalil showed solid returns over the last few months and may actually be approaching a breakup point.

Dreyfus Research Growth

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dreyfus Research Growth are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Dreyfus Research is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bukit Jalil and Dreyfus Research

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

The idea behind Bukit Jalil Global and Dreyfus Research Growth 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.