Correlation Between SSF Home and Daya Materials
Can any of the company-specific risk be diversified away by investing in both SSF Home and Daya Materials 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 SSF Home and Daya Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSF Home Group and Daya Materials Bhd, you can compare the effects of market volatilities on SSF Home and Daya Materials 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 SSF Home with a short position of Daya Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSF Home and Daya Materials.
Diversification Opportunities for SSF Home and Daya Materials
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SSF and Daya is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SSF Home Group and Daya Materials Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daya Materials Bhd and SSF Home 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 SSF Home Group are associated (or correlated) with Daya Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daya Materials Bhd has no effect on the direction of SSF Home i.e., SSF Home and Daya Materials go up and down completely randomly.
Pair Corralation between SSF Home and Daya Materials
Assuming the 90 days trading horizon SSF Home Group is expected to generate 0.77 times more return on investment than Daya Materials. However, SSF Home Group is 1.3 times less risky than Daya Materials. It trades about 0.06 of its potential returns per unit of risk. Daya Materials Bhd is currently generating about -0.01 per unit of risk. If you would invest 25.00 in SSF Home Group on September 4, 2024 and sell it today you would earn a total of 9.00 from holding SSF Home Group or generate 36.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSF Home Group vs. Daya Materials Bhd
Performance |
| Timeline |
| SSF Home Group |
| Daya Materials Bhd |
SSF Home and Daya Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSF Home and Daya Materials
The main advantage of trading using opposite SSF Home and Daya Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSF Home position performs unexpectedly, Daya Materials 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 Daya Materials will offset losses from the drop in Daya Materials' long position.| SSF Home vs. Star Media Group | SSF Home vs. Petronas Chemicals Group | SSF Home vs. Senheng New Retail | SSF Home vs. Silver Ridge Holdings |
| Daya Materials vs. SSF Home Group | Daya Materials vs. Greatech Technology Bhd | Daya Materials vs. Lyc Healthcare Bhd | Daya Materials vs. YTL Hospitality REIT |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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