Correlation Between SSF Home and ATA IMS
Can any of the company-specific risk be diversified away by investing in both SSF Home and ATA IMS 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 ATA IMS 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 ATA IMS Bhd, you can compare the effects of market volatilities on SSF Home and ATA IMS 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 ATA IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSF Home and ATA IMS.
Diversification Opportunities for SSF Home and ATA IMS
Modest diversification
The 3 months correlation between SSF and ATA is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding SSF Home Group and ATA IMS Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATA IMS 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 ATA IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATA IMS Bhd has no effect on the direction of SSF Home i.e., SSF Home and ATA IMS go up and down completely randomly.
Pair Corralation between SSF Home and ATA IMS
Assuming the 90 days trading horizon SSF Home Group is expected to generate 0.58 times more return on investment than ATA IMS. However, SSF Home Group is 1.74 times less risky than ATA IMS. It trades about 0.05 of its potential returns per unit of risk. ATA IMS Bhd is currently generating about 0.03 per unit of risk. If you would invest 26.00 in SSF Home Group on September 12, 2024 and sell it today you would earn a total of 9.00 from holding SSF Home Group or generate 34.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 83.0% |
| Values | Daily Returns |
SSF Home Group vs. ATA IMS Bhd
Performance |
| Timeline |
| SSF Home Group |
| ATA IMS Bhd |
SSF Home and ATA IMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSF Home and ATA IMS
The main advantage of trading using opposite SSF Home and ATA IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSF Home position performs unexpectedly, ATA IMS 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 ATA IMS will offset losses from the drop in ATA IMS's long position.| SSF Home vs. Malayan Banking Bhd | SSF Home vs. Public Bank Bhd | SSF Home vs. Petronas Chemicals Group | SSF Home vs. IHH Healthcare Bhd |
| ATA IMS vs. Computer Forms Bhd | ATA IMS vs. Sports Toto Berhad | ATA IMS vs. Homeritz Bhd | ATA IMS vs. SSF Home 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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