Correlation Between AMMB Holdings and Impiana Hotels
Can any of the company-specific risk be diversified away by investing in both AMMB Holdings and Impiana Hotels 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 Impiana Hotels 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 Impiana Hotels Bhd, you can compare the effects of market volatilities on AMMB Holdings and Impiana Hotels 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 Impiana Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMMB Holdings and Impiana Hotels.
Diversification Opportunities for AMMB Holdings and Impiana Hotels
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMMB and Impiana is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding AMMB Holdings Bhd and Impiana Hotels Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impiana Hotels 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 Impiana Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impiana Hotels Bhd has no effect on the direction of AMMB Holdings i.e., AMMB Holdings and Impiana Hotels go up and down completely randomly.
Pair Corralation between AMMB Holdings and Impiana Hotels
Assuming the 90 days trading horizon AMMB Holdings is expected to generate 3.0 times less return on investment than Impiana Hotels. But when comparing it to its historical volatility, AMMB Holdings Bhd is 4.25 times less risky than Impiana Hotels. It trades about 0.08 of its potential returns per unit of risk. Impiana Hotels Bhd is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Impiana Hotels Bhd on August 27, 2024 and sell it today you would earn a total of 10.00 from holding Impiana Hotels Bhd or generate 90.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMMB Holdings Bhd vs. Impiana Hotels Bhd
Performance |
| Timeline |
| AMMB Holdings Bhd |
| Impiana Hotels Bhd |
AMMB Holdings and Impiana Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMMB Holdings and Impiana Hotels
The main advantage of trading using opposite AMMB Holdings and Impiana Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMMB Holdings position performs unexpectedly, Impiana Hotels 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 Impiana Hotels will offset losses from the drop in Impiana Hotels' long position.| AMMB Holdings vs. Digistar Bhd | AMMB Holdings vs. Minetech Resources Bhd | AMMB Holdings vs. OpenSys M Bhd | AMMB Holdings vs. Insas Bhd |
| Impiana Hotels vs. Digistar Bhd | Impiana Hotels vs. Minetech Resources Bhd | Impiana Hotels vs. OpenSys M Bhd | Impiana Hotels 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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