Correlation Between SSF Home and Farm Price
Can any of the company-specific risk be diversified away by investing in both SSF Home and Farm Price 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 Farm Price 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 Farm Price Holdings, you can compare the effects of market volatilities on SSF Home and Farm Price 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 Farm Price. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSF Home and Farm Price.
Diversification Opportunities for SSF Home and Farm Price
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SSF and Farm is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SSF Home Group and Farm Price Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farm Price Holdings 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 Farm Price. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farm Price Holdings has no effect on the direction of SSF Home i.e., SSF Home and Farm Price go up and down completely randomly.
Pair Corralation between SSF Home and Farm Price
Assuming the 90 days trading horizon SSF Home Group is expected to generate 1.39 times more return on investment than Farm Price. However, SSF Home is 1.39 times more volatile than Farm Price Holdings. It trades about 0.14 of its potential returns per unit of risk. Farm Price Holdings is currently generating about -0.46 per unit of risk. If you would invest 35.00 in SSF Home Group on November 4, 2024 and sell it today you would earn a total of 2.00 from holding SSF Home Group or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSF Home Group vs. Farm Price Holdings
Performance |
| Timeline |
| SSF Home Group |
| Farm Price Holdings |
SSF Home and Farm Price Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSF Home and Farm Price
The main advantage of trading using opposite SSF Home and Farm Price positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSF Home position performs unexpectedly, Farm Price 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 Farm Price will offset losses from the drop in Farm Price's long position.| SSF Home vs. YTL Hospitality REIT | SSF Home vs. Steel Hawk Berhad | SSF Home vs. PIE Industrial Bhd | SSF Home vs. Mycron Steel Bhd |
| Farm Price vs. Kluang Rubber | Farm Price vs. BP Plastics Holding | Farm Price vs. Ho Hup Construction | Farm Price vs. Greatech Technology 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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