Portfolio mix: the relationship between sector indices in Bursa Malaysia / Nur Diana Ahmad

This study is prepared as part of requirement to complete Bachelor of Business Administration with (Honors) Finance. The objective of this study is to see the relationship among seven (7) sectors in Main Board of Bursa Malaysia. In this study, samples are taken from seven (7) sectors in Main Board of Bursa Malaysia. The selected sectors are: Consumer Product, Finance, Industrial Products, Properties, Technology, Plantations and Constructions. This study highlights the best mix of sectors in Main Board of Bursa Malaysia that investors can combine in their portfolio. The data consists of daily basis closing indices prices of seven (7) sectors as at the beginning of 2001 over a five (5) years period from January 2001 to December 2005. The method used is Pearson-Product-Moment Correlation Coefficient. The findings show that the investors can invest in any sectors mix based on their risk tolerance. Investors that are willing to invest in high risk sector can invest in Finance & Industrial Products Sectors, Property & Industrial Products Sectors, Construction & Property Sectors, Construction & Technology Sectors and Property & Technology Sectors. The best sectors to invest in are Technology and Property Sectors while Plantation Sector shows the weakest correlation with other sectors.