Correlation Between Sports Toto and RHB Bank
Can any of the company-specific risk be diversified away by investing in both Sports Toto and RHB Bank 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 RHB Bank 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 RHB Bank Bhd, you can compare the effects of market volatilities on Sports Toto and RHB Bank 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 RHB Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sports Toto and RHB Bank.
Diversification Opportunities for Sports Toto and RHB Bank
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sports and RHB is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sports Toto Berhad and RHB Bank Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RHB Bank Bhd 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 RHB Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RHB Bank Bhd has no effect on the direction of Sports Toto i.e., Sports Toto and RHB Bank go up and down completely randomly.
Pair Corralation between Sports Toto and RHB Bank
Assuming the 90 days trading horizon Sports Toto Berhad is expected to under-perform the RHB Bank. In addition to that, Sports Toto is 1.94 times more volatile than RHB Bank Bhd. It trades about -0.11 of its total potential returns per unit of risk. RHB Bank Bhd is currently generating about 0.23 per unit of volatility. If you would invest 641.00 in RHB Bank Bhd on August 31, 2024 and sell it today you would earn a total of 26.00 from holding RHB Bank Bhd or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sports Toto Berhad vs. RHB Bank Bhd
Performance |
| Timeline |
| Sports Toto Berhad |
| RHB Bank Bhd |
Sports Toto and RHB Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sports Toto and RHB Bank
The main advantage of trading using opposite Sports Toto and RHB Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sports Toto position performs unexpectedly, RHB Bank 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 RHB Bank will offset losses from the drop in RHB Bank's long position.| Sports Toto vs. Impiana Hotels Bhd | Sports Toto vs. Digistar Bhd | Sports Toto vs. Minetech Resources Bhd | Sports Toto vs. Swift Haulage Bhd |
| RHB Bank vs. DC HEALTHCARE HOLDINGS | RHB Bank vs. Press Metal Bhd | RHB Bank vs. Choo Bee Metal | RHB Bank vs. Rubberex M |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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