Correlation Between SSF Home and Rubberex M
Can any of the company-specific risk be diversified away by investing in both SSF Home and Rubberex M 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 Rubberex M 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 Rubberex M, you can compare the effects of market volatilities on SSF Home and Rubberex M 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 Rubberex M. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSF Home and Rubberex M.
Diversification Opportunities for SSF Home and Rubberex M
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SSF and Rubberex is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding SSF Home Group and Rubberex M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubberex M 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 Rubberex M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubberex M has no effect on the direction of SSF Home i.e., SSF Home and Rubberex M go up and down completely randomly.
Pair Corralation between SSF Home and Rubberex M
Assuming the 90 days trading horizon SSF Home Group is expected to generate 0.54 times more return on investment than Rubberex M. However, SSF Home Group is 1.84 times less risky than Rubberex M. It trades about 0.21 of its potential returns per unit of risk. Rubberex M is currently generating about -0.15 per unit of risk. If you would invest 35.00 in SSF Home Group on November 30, 2024 and sell it today you would earn a total of 6.00 from holding SSF Home Group or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSF Home Group vs. Rubberex M
Performance |
| Timeline |
| SSF Home Group |
| Rubberex M |
SSF Home and Rubberex M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSF Home and Rubberex M
The main advantage of trading using opposite SSF Home and Rubberex M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSF Home position performs unexpectedly, Rubberex M 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 Rubberex M will offset losses from the drop in Rubberex M's long position.| SSF Home vs. Press Metal Bhd | SSF Home vs. Binasat Communications Bhd | SSF Home vs. Public Packages Holdings | SSF Home vs. Greatech Technology Bhd |
| Rubberex M vs. Privasia Technology Bhd | Rubberex M vs. SSF Home Group | Rubberex M vs. Cloudpoint Technology Berhad | Rubberex M vs. MClean Technologies 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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