Correlation Between Cengild Medical and Sports Toto
Can any of the company-specific risk be diversified away by investing in both Cengild Medical 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 Cengild Medical and Sports Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cengild Medical Berhad and Sports Toto Berhad, you can compare the effects of market volatilities on Cengild Medical 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 Cengild Medical with a short position of Sports Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cengild Medical and Sports Toto.
Diversification Opportunities for Cengild Medical and Sports Toto
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cengild and Sports is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cengild Medical Berhad 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 Cengild Medical 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 Cengild Medical Berhad 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 Cengild Medical i.e., Cengild Medical and Sports Toto go up and down completely randomly.
Pair Corralation between Cengild Medical and Sports Toto
Assuming the 90 days trading horizon Cengild Medical Berhad is expected to under-perform the Sports Toto. In addition to that, Cengild Medical is 1.64 times more volatile than Sports Toto Berhad. It trades about -0.04 of its total potential returns per unit of risk. Sports Toto Berhad is currently generating about 0.01 per unit of volatility. If you would invest 144.00 in Sports Toto Berhad on August 31, 2024 and sell it today you would earn a total of 2.00 from holding Sports Toto Berhad or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cengild Medical Berhad vs. Sports Toto Berhad
Performance |
| Timeline |
| Cengild Medical Berhad |
| Sports Toto Berhad |
Cengild Medical and Sports Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cengild Medical and Sports Toto
The main advantage of trading using opposite Cengild Medical and Sports Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cengild Medical 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.| Cengild Medical vs. Senheng New Retail | Cengild Medical vs. CSC Steel Holdings | Cengild Medical vs. Sports Toto Berhad | Cengild Medical vs. Star Media Group |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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