Correlation Between Bukit Jalil and Voyager Acquisition

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

Diversification Opportunities for Bukit Jalil and Voyager Acquisition

0.15

Correlation Coefficient

Bukit Jalil  Voyager Acquisition

Average diversification

The 3 months correlation between Bukit and Voyager is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Jalil Global and Voyager Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voyager Acquisition Corp 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 Voyager Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voyager Acquisition Corp has no effect on the direction of Bukit Jalil i.e., Bukit Jalil and Voyager Acquisition go up and down completely randomly.

Pair Corralation between Bukit Jalil and Voyager Acquisition

Assuming the 90 days horizon Bukit Jalil Global is expected to generate 368.58 times more return on investment than Voyager Acquisition. However, Bukit Jalil is 368.58 times more volatile than Voyager Acquisition Corp. It trades about 0.27 of its potential returns per unit of risk. Voyager Acquisition Corp is currently generating about 0.19 per unit of risk. If you would invest  0.75  in Bukit Jalil Global on October 20, 2024 and sell it today you would earn a total of  1.98  from holding Bukit Jalil Global or generate 264.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	70.0%
Values	Daily Returns

Bukit Jalil Global  vs.  Voyager Acquisition Corp

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 fragile basic indicators, Bukit Jalil showed solid returns over the last few months and may actually be approaching a breakup point.

Voyager Acquisition Corp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Voyager Acquisition Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Voyager Acquisition is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Bukit Jalil and Voyager Acquisition

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

The idea behind Bukit Jalil Global and Voyager Acquisition Corp 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.