Correlation Between Digistar Bhd and AMMB Holdings
Can any of the company-specific risk be diversified away by investing in both Digistar Bhd and AMMB Holdings 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 Digistar Bhd and AMMB Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digistar Bhd and AMMB Holdings Bhd, you can compare the effects of market volatilities on Digistar Bhd and AMMB Holdings 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 Digistar Bhd with a short position of AMMB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digistar Bhd and AMMB Holdings.
Diversification Opportunities for Digistar Bhd and AMMB Holdings
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Digistar and AMMB is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Digistar Bhd and AMMB Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMMB Holdings Bhd and Digistar Bhd 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 Digistar Bhd are associated (or correlated) with AMMB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMMB Holdings Bhd has no effect on the direction of Digistar Bhd i.e., Digistar Bhd and AMMB Holdings go up and down completely randomly.
Pair Corralation between Digistar Bhd and AMMB Holdings
Assuming the 90 days trading horizon Digistar Bhd is expected to generate 4.63 times more return on investment than AMMB Holdings. However, Digistar Bhd is 4.63 times more volatile than AMMB Holdings Bhd. It trades about 0.03 of its potential returns per unit of risk. AMMB Holdings Bhd is currently generating about 0.01 per unit of risk. If you would invest 5.50 in Digistar Bhd on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Digistar Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digistar Bhd vs. AMMB Holdings Bhd
Performance |
| Timeline |
| Digistar Bhd |
| AMMB Holdings Bhd |
Digistar Bhd and AMMB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digistar Bhd and AMMB Holdings
The main advantage of trading using opposite Digistar Bhd and AMMB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digistar Bhd position performs unexpectedly, AMMB Holdings 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 AMMB Holdings will offset losses from the drop in AMMB Holdings' long position.| Digistar Bhd vs. TAS Offshore Bhd | Digistar Bhd vs. Rubberex M | Digistar Bhd vs. Sungei Bagan Rubber | Digistar Bhd vs. Ho Hup Construction |
| AMMB Holdings vs. Alliance Financial Group | AMMB Holdings vs. Minetech Resources Bhd | AMMB Holdings vs. Swift Haulage Bhd | AMMB Holdings vs. Sunzen Biotech 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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