Correlation Between AMMB Holdings and Star Media
Can any of the company-specific risk be diversified away by investing in both AMMB Holdings and Star Media 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 Star Media 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 Star Media Group, you can compare the effects of market volatilities on AMMB Holdings and Star Media 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 Star Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMMB Holdings and Star Media.
Diversification Opportunities for AMMB Holdings and Star Media
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AMMB and Star is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding AMMB Holdings Bhd and Star Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Media Group 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 Star Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Media Group has no effect on the direction of AMMB Holdings i.e., AMMB Holdings and Star Media go up and down completely randomly.
Pair Corralation between AMMB Holdings and Star Media
Assuming the 90 days trading horizon AMMB Holdings Bhd is expected to generate 0.85 times more return on investment than Star Media. However, AMMB Holdings Bhd is 1.18 times less risky than Star Media. It trades about 0.12 of its potential returns per unit of risk. Star Media Group is currently generating about 0.07 per unit of risk. If you would invest 515.00 in AMMB Holdings Bhd on August 29, 2024 and sell it today you would earn a total of 19.00 from holding AMMB Holdings Bhd or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMMB Holdings Bhd vs. Star Media Group
Performance |
| Timeline |
| AMMB Holdings Bhd |
| Star Media Group |
AMMB Holdings and Star Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMMB Holdings and Star Media
The main advantage of trading using opposite AMMB Holdings and Star Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMMB Holdings position performs unexpectedly, Star Media 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 Star Media will offset losses from the drop in Star Media's long position.| AMMB Holdings vs. Binasat Communications Bhd | AMMB Holdings vs. Star Media Group | AMMB Holdings vs. Kluang Rubber | AMMB Holdings vs. Lyc Healthcare Bhd |
| Star Media vs. Melewar Industrial Group | Star Media vs. Binasat Communications Bhd | Star Media vs. Datasonic Group Bhd | Star Media vs. Eonmetall Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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