Correlation Between SSF Home and MyTech Group
Can any of the company-specific risk be diversified away by investing in both SSF Home and MyTech Group 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 MyTech Group 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 MyTech Group Bhd, you can compare the effects of market volatilities on SSF Home and MyTech Group 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 MyTech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSF Home and MyTech Group.
Diversification Opportunities for SSF Home and MyTech Group
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SSF and MyTech is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding SSF Home Group and MyTech Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyTech Group 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 MyTech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyTech Group Bhd has no effect on the direction of SSF Home i.e., SSF Home and MyTech Group go up and down completely randomly.
Pair Corralation between SSF Home and MyTech Group
Assuming the 90 days trading horizon SSF Home Group is expected to generate 0.67 times more return on investment than MyTech Group. However, SSF Home Group is 1.49 times less risky than MyTech Group. It trades about 0.05 of its potential returns per unit of risk. MyTech Group Bhd is currently generating about 0.0 per unit of risk. If you would invest 26.00 in SSF Home Group on September 2, 2024 and sell it today you would earn a total of 8.00 from holding SSF Home Group or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 58.14% |
| Values | Daily Returns |
SSF Home Group vs. MyTech Group Bhd
Performance |
| Timeline |
| SSF Home Group |
| MyTech Group Bhd |
SSF Home and MyTech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSF Home and MyTech Group
The main advantage of trading using opposite SSF Home and MyTech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSF Home position performs unexpectedly, MyTech Group 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 MyTech Group will offset losses from the drop in MyTech Group's long position.| SSF Home vs. Farm Price Holdings | SSF Home vs. Petronas Chemicals Group | SSF Home vs. Press Metal Bhd | SSF Home vs. Mycron Steel Bhd |
| MyTech Group vs. SSF Home Group | MyTech Group vs. Aeon Credit Service | MyTech Group vs. Oriental Food Industries | MyTech Group vs. Star Media Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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