Correlation Between AMMB Holdings and Tomei Consolidated
Can any of the company-specific risk be diversified away by investing in both AMMB Holdings and Tomei Consolidated 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 Tomei Consolidated 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 Tomei Consolidated Bhd, you can compare the effects of market volatilities on AMMB Holdings and Tomei Consolidated 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 Tomei Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMMB Holdings and Tomei Consolidated.
Diversification Opportunities for AMMB Holdings and Tomei Consolidated
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMMB and Tomei is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding AMMB Holdings Bhd and Tomei Consolidated Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tomei Consolidated 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 Tomei Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tomei Consolidated Bhd has no effect on the direction of AMMB Holdings i.e., AMMB Holdings and Tomei Consolidated go up and down completely randomly.
Pair Corralation between AMMB Holdings and Tomei Consolidated
Assuming the 90 days trading horizon AMMB Holdings Bhd is expected to generate 0.86 times more return on investment than Tomei Consolidated. However, AMMB Holdings Bhd is 1.16 times less risky than Tomei Consolidated. It trades about 0.18 of its potential returns per unit of risk. Tomei Consolidated Bhd is currently generating about -0.34 per unit of risk. If you would invest 506.00 in AMMB Holdings Bhd on September 2, 2024 and sell it today you would earn a total of 33.00 from holding AMMB Holdings Bhd or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMMB Holdings Bhd vs. Tomei Consolidated Bhd
Performance |
| Timeline |
| AMMB Holdings Bhd |
| Tomei Consolidated Bhd |
AMMB Holdings and Tomei Consolidated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMMB Holdings and Tomei Consolidated
The main advantage of trading using opposite AMMB Holdings and Tomei Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMMB Holdings position performs unexpectedly, Tomei Consolidated 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 Tomei Consolidated will offset losses from the drop in Tomei Consolidated's long position.| AMMB Holdings vs. Lyc Healthcare Bhd | AMMB Holdings vs. Pantech Group Holdings | AMMB Holdings vs. ONETECH SOLUTIONS HOLDINGS | AMMB Holdings vs. Kobay Tech Bhd |
| Tomei Consolidated vs. Melewar Industrial Group | Tomei Consolidated vs. Kossan Rubber Industries | Tomei Consolidated vs. Eversafe Rubber Bhd | Tomei Consolidated vs. Diversified Gateway Solutions |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |