Correlation Between Sports Toto and ES Ceramics
Can any of the company-specific risk be diversified away by investing in both Sports Toto and ES Ceramics 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 Sports Toto and ES Ceramics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sports Toto Berhad and ES Ceramics Technology, you can compare the effects of market volatilities on Sports Toto and ES Ceramics 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 Sports Toto with a short position of ES Ceramics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sports Toto and ES Ceramics.
Diversification Opportunities for Sports Toto and ES Ceramics
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sports and 0100 is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sports Toto Berhad and ES Ceramics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ES Ceramics Technology and Sports Toto 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 Sports Toto Berhad are associated (or correlated) with ES Ceramics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ES Ceramics Technology has no effect on the direction of Sports Toto i.e., Sports Toto and ES Ceramics go up and down completely randomly.
Pair Corralation between Sports Toto and ES Ceramics
Assuming the 90 days trading horizon Sports Toto Berhad is expected to generate 0.28 times more return on investment than ES Ceramics. However, Sports Toto Berhad is 3.57 times less risky than ES Ceramics. It trades about 0.01 of its potential returns per unit of risk. ES Ceramics Technology is currently generating about -0.01 per unit of risk. If you would invest 156.00 in Sports Toto Berhad on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Sports Toto Berhad or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sports Toto Berhad vs. ES Ceramics Technology
Performance |
| Timeline |
| Sports Toto Berhad |
| ES Ceramics Technology |
Sports Toto and ES Ceramics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sports Toto and ES Ceramics
The main advantage of trading using opposite Sports Toto and ES Ceramics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sports Toto position performs unexpectedly, ES Ceramics 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 ES Ceramics will offset losses from the drop in ES Ceramics' long position.| Sports Toto vs. Cosmos Technology International | Sports Toto vs. Sunzen Biotech Bhd | Sports Toto vs. Magni Tech Industries | Sports Toto vs. Supercomnet Technologies Bhd |
| ES Ceramics vs. Petronas Chemicals Group | ES Ceramics vs. Sunzen Biotech Bhd | ES Ceramics vs. Supercomnet Technologies Bhd | ES Ceramics vs. Kobay Tech 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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