Correlation Between XOX Technology and Sports Toto
Can any of the company-specific risk be diversified away by investing in both XOX Technology and Sports Toto 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 XOX Technology and Sports Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XOX Technology Bhd and Sports Toto Berhad, you can compare the effects of market volatilities on XOX Technology and Sports Toto 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 XOX Technology with a short position of Sports Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of XOX Technology and Sports Toto.
Diversification Opportunities for XOX Technology and Sports Toto
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between XOX and Sports is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding XOX Technology Bhd and Sports Toto Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sports Toto Berhad and XOX Technology 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 XOX Technology Bhd are associated (or correlated) with Sports Toto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sports Toto Berhad has no effect on the direction of XOX Technology i.e., XOX Technology and Sports Toto go up and down completely randomly.
Pair Corralation between XOX Technology and Sports Toto
Assuming the 90 days trading horizon XOX Technology Bhd is expected to generate 5.23 times more return on investment than Sports Toto. However, XOX Technology is 5.23 times more volatile than Sports Toto Berhad. It trades about 0.04 of its potential returns per unit of risk. Sports Toto Berhad is currently generating about 0.01 per unit of risk. If you would invest 5.00 in XOX Technology Bhd on November 2, 2024 and sell it today you would earn a total of 0.50 from holding XOX Technology Bhd or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XOX Technology Bhd vs. Sports Toto Berhad
Performance |
| Timeline |
| XOX Technology Bhd |
| Sports Toto Berhad |
XOX Technology and Sports Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XOX Technology and Sports Toto
The main advantage of trading using opposite XOX Technology and Sports Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XOX Technology position performs unexpectedly, Sports Toto 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 Sports Toto will offset losses from the drop in Sports Toto's long position.| XOX Technology vs. Datasonic Group Bhd | XOX Technology vs. Awanbiru Technology Bhd | XOX Technology vs. Dataprep Holdings Bhd | XOX Technology vs. Systech Bhd |
| Sports Toto vs. Silver Ridge Holdings | Sports Toto vs. Public Packages Holdings | Sports Toto vs. Southern Steel Bhd | Sports Toto vs. Impiana Hotels Bhd |
Check out your portfolio center.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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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