Correlation Between AMMB Holdings and ViTrox Bhd
Can any of the company-specific risk be diversified away by investing in both AMMB Holdings and ViTrox Bhd 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 AMMB Holdings and ViTrox Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMMB Holdings Bhd and ViTrox Bhd, you can compare the effects of market volatilities on AMMB Holdings and ViTrox Bhd 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 AMMB Holdings with a short position of ViTrox Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMMB Holdings and ViTrox Bhd.
Diversification Opportunities for AMMB Holdings and ViTrox Bhd
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AMMB and ViTrox is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding AMMB Holdings Bhd and ViTrox Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ViTrox Bhd and AMMB Holdings 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 AMMB Holdings Bhd are associated (or correlated) with ViTrox Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ViTrox Bhd has no effect on the direction of AMMB Holdings i.e., AMMB Holdings and ViTrox Bhd go up and down completely randomly.
Pair Corralation between AMMB Holdings and ViTrox Bhd
Assuming the 90 days trading horizon AMMB Holdings Bhd is expected to generate 0.63 times more return on investment than ViTrox Bhd. However, AMMB Holdings Bhd is 1.58 times less risky than ViTrox Bhd. It trades about 0.08 of its potential returns per unit of risk. ViTrox Bhd is currently generating about -0.01 per unit of risk. If you would invest 363.00 in AMMB Holdings Bhd on August 27, 2024 and sell it today you would earn a total of 162.00 from holding AMMB Holdings Bhd or generate 44.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMMB Holdings Bhd vs. ViTrox Bhd
Performance |
| Timeline |
| AMMB Holdings Bhd |
| ViTrox Bhd |
AMMB Holdings and ViTrox Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMMB Holdings and ViTrox Bhd
The main advantage of trading using opposite AMMB Holdings and ViTrox Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMMB Holdings position performs unexpectedly, ViTrox Bhd 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 ViTrox Bhd will offset losses from the drop in ViTrox Bhd's long position.| AMMB Holdings vs. Digistar Bhd | AMMB Holdings vs. Minetech Resources Bhd | AMMB Holdings vs. OpenSys M Bhd | AMMB Holdings vs. Insas 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |