Correlation Between OpenSys M and Sports Toto
Can any of the company-specific risk be diversified away by investing in both OpenSys M 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 OpenSys M and Sports Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OpenSys M Bhd and Sports Toto Berhad, you can compare the effects of market volatilities on OpenSys M 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 OpenSys M with a short position of Sports Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of OpenSys M and Sports Toto.
Diversification Opportunities for OpenSys M and Sports Toto
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OpenSys and Sports is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding OpenSys M 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 OpenSys M 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 OpenSys M 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 OpenSys M i.e., OpenSys M and Sports Toto go up and down completely randomly.
Pair Corralation between OpenSys M and Sports Toto
Assuming the 90 days trading horizon OpenSys M Bhd is expected to generate 0.98 times more return on investment than Sports Toto. However, OpenSys M Bhd is 1.02 times less risky than Sports Toto. It trades about -0.07 of its potential returns per unit of risk. Sports Toto Berhad is currently generating about -0.16 per unit of risk. If you would invest 37.00 in OpenSys M Bhd on August 30, 2024 and sell it today you would lose (1.00) from holding OpenSys M Bhd or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OpenSys M Bhd vs. Sports Toto Berhad
Performance |
| Timeline |
| OpenSys M Bhd |
| Sports Toto Berhad |
OpenSys M and Sports Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OpenSys M and Sports Toto
The main advantage of trading using opposite OpenSys M and Sports Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OpenSys M 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.| OpenSys M vs. Malayan Banking Bhd | OpenSys M vs. Public Bank Bhd | OpenSys M vs. Petronas Chemicals Group | OpenSys M vs. IHH Healthcare Bhd |
| Sports Toto vs. Impiana Hotels Bhd | Sports Toto vs. Minetech Resources Bhd | Sports Toto vs. Sunzen Biotech Bhd | Sports Toto vs. ViTrox 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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