Correlation Between SSF Home and Computer Forms
Can any of the company-specific risk be diversified away by investing in both SSF Home and Computer Forms 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 Computer Forms 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 Computer Forms Bhd, you can compare the effects of market volatilities on SSF Home and Computer Forms 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 Computer Forms. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSF Home and Computer Forms.
Diversification Opportunities for SSF Home and Computer Forms
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SSF and Computer is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding SSF Home Group and Computer Forms Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Forms 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 Computer Forms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Forms Bhd has no effect on the direction of SSF Home i.e., SSF Home and Computer Forms go up and down completely randomly.
Pair Corralation between SSF Home and Computer Forms
Assuming the 90 days trading horizon SSF Home Group is expected to generate 0.4 times more return on investment than Computer Forms. However, SSF Home Group is 2.48 times less risky than Computer Forms. It trades about 0.13 of its potential returns per unit of risk. Computer Forms Bhd is currently generating about -0.13 per unit of risk. If you would invest 35.00 in SSF Home Group on November 3, 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. Computer Forms Bhd
Performance |
| Timeline |
| SSF Home Group |
| Computer Forms Bhd |
SSF Home and Computer Forms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSF Home and Computer Forms
The main advantage of trading using opposite SSF Home and Computer Forms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSF Home position performs unexpectedly, Computer Forms 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 Computer Forms will offset losses from the drop in Computer Forms' long position.| SSF Home vs. Eonmetall Group Bhd | SSF Home vs. Sports Toto Berhad | SSF Home vs. Malaysia Steel Works | SSF Home vs. Apex Healthcare Bhd |
| Computer Forms vs. Lotte Chemical Titan | Computer Forms vs. Nova Wellness Group | Computer Forms vs. Oriental Food Industries | Computer Forms vs. Kawan Food 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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