Correlation Between Vine Hill and Bukit Jalil

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

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

Diversification Opportunities for Vine Hill and Bukit Jalil

0.1

Correlation Coefficient

Vine Hill  Bukit Jalil

Average diversification

The 3 months correlation between Vine and Bukit is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Vine Hill Capital 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 Vine Hill 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 Vine Hill Capital 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 Vine Hill i.e., Vine Hill and Bukit Jalil go up and down completely randomly.

Pair Corralation between Vine Hill and Bukit Jalil

Given the investment horizon of 90 days Vine Hill is expected to generate 42.69 times less return on investment than Bukit Jalil. But when comparing it to its historical volatility, Vine Hill Capital is 182.0 times less risky than Bukit Jalil. It trades about 0.19 of its potential returns per unit of risk. Bukit Jalil Global is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  17.00  in Bukit Jalil Global on September 29, 2024 and sell it today you would lose (7.00) from holding Bukit Jalil Global or give up 41.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	35.83%
Values	Daily Returns

Vine Hill Capital  vs.  Bukit Jalil Global

Vine Hill Capital

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vine Hill Capital are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward indicators, Vine Hill is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Bukit Jalil Global

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bukit Jalil Global are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Bukit Jalil reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vine Hill and Bukit Jalil

The main advantage of trading using opposite Vine Hill and Bukit Jalil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vine Hill 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 Vine Hill Capital 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.