Correlation Between SSF Home and Sports Toto
Can any of the company-specific risk be diversified away by investing in both SSF Home 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 SSF Home and Sports Toto 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 Sports Toto Berhad, you can compare the effects of market volatilities on SSF Home 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 SSF Home with a short position of Sports Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSF Home and Sports Toto.
Diversification Opportunities for SSF Home and Sports Toto
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between SSF and Sports is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding SSF Home Group 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 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 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 SSF Home i.e., SSF Home and Sports Toto go up and down completely randomly.
Pair Corralation between SSF Home and Sports Toto
Assuming the 90 days trading horizon SSF Home Group is expected to generate 1.43 times more return on investment than Sports Toto. However, SSF Home is 1.43 times more volatile than Sports Toto Berhad. It trades about 0.07 of its potential returns per unit of risk. Sports Toto Berhad is currently generating about 0.03 per unit of risk. If you would invest 28.00 in SSF Home Group on September 3, 2024 and sell it today you would earn a total of 6.00 from holding SSF Home Group or generate 21.43% 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. Sports Toto Berhad
Performance |
| Timeline |
| SSF Home Group |
| Sports Toto Berhad |
SSF Home and Sports Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSF Home and Sports Toto
The main advantage of trading using opposite SSF Home and Sports Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSF Home 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.| SSF Home vs. Choo Bee Metal | SSF Home vs. EA Technique M | SSF Home vs. Resintech Bhd | SSF Home vs. Minetech Resources Bhd |
| Sports Toto vs. Minetech Resources Bhd | Sports Toto vs. Swift Haulage Bhd | Sports Toto vs. Insas Bhd | Sports Toto vs. Bina Darulaman 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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