Correlation Between Grounded People and Bukit Jalil

Can any of the company-specific risk be diversified away by investing in both Grounded People and Bukit Jalil 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 Grounded People and Bukit Jalil into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grounded People Apparel and Bukit Jalil Global, you can compare the effects of market volatilities on Grounded People and Bukit Jalil 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 Grounded People with a short position of Bukit Jalil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grounded People and Bukit Jalil.

Diversification Opportunities for Grounded People and Bukit Jalil

0.0

Correlation Coefficient

Grounded People  Bukit Jalil

Pay attention - limited upside

The 3 months correlation between Grounded and Bukit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grounded People Apparel and Bukit Jalil Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Jalil Global and Grounded People 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 Grounded People Apparel are associated (or correlated) with Bukit Jalil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Jalil Global has no effect on the direction of Grounded People i.e., Grounded People and Bukit Jalil go up and down completely randomly.

Pair Corralation between Grounded People and Bukit Jalil

If you would invest  10.00  in Bukit Jalil Global on October 24, 2024 and sell it today you would earn a total of  3.00  from holding Bukit Jalil Global or generate 30.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	42.11%
Values	Daily Returns

Grounded People Apparel  vs.  Bukit Jalil Global

Grounded People Apparel

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Grounded People Apparel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Grounded People is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Bukit Jalil Global

Risk-Adjusted Performance

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Good

Over the last 90 days Bukit Jalil Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively unfluctuating basic indicators, Bukit Jalil reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Grounded People and Bukit Jalil

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

The idea behind Grounded People Apparel and Bukit Jalil Global 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.