Correlation Between Sports Toto and Malayan Banking
Can any of the company-specific risk be diversified away by investing in both Sports Toto and Malayan Banking 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 Malayan Banking 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 Malayan Banking Bhd, you can compare the effects of market volatilities on Sports Toto and Malayan Banking 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 Malayan Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sports Toto and Malayan Banking.
Diversification Opportunities for Sports Toto and Malayan Banking
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sports and Malayan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sports Toto Berhad and Malayan Banking Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malayan Banking 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 Malayan Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malayan Banking Bhd has no effect on the direction of Sports Toto i.e., Sports Toto and Malayan Banking go up and down completely randomly.
Pair Corralation between Sports Toto and Malayan Banking
Assuming the 90 days trading horizon Sports Toto is expected to generate 3.66 times less return on investment than Malayan Banking. In addition to that, Sports Toto is 2.38 times more volatile than Malayan Banking Bhd. It trades about 0.01 of its total potential returns per unit of risk. Malayan Banking Bhd is currently generating about 0.1 per unit of volatility. If you would invest 761.00 in Malayan Banking Bhd on September 14, 2024 and sell it today you would earn a total of 253.00 from holding Malayan Banking Bhd or generate 33.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sports Toto Berhad vs. Malayan Banking Bhd
Performance |
| Timeline |
| Sports Toto Berhad |
| Malayan Banking Bhd |
Sports Toto and Malayan Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sports Toto and Malayan Banking
The main advantage of trading using opposite Sports Toto and Malayan Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sports Toto position performs unexpectedly, Malayan Banking 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 Malayan Banking will offset losses from the drop in Malayan Banking's long position.| Sports Toto vs. Shangri La Hotels | Sports Toto vs. Globetronics Tech Bhd | Sports Toto vs. Oriental Food Industries | Sports Toto vs. CSC Steel Holdings |
| Malayan Banking vs. Carlsberg Brewery Malaysia | Malayan Banking vs. Impiana Hotels Bhd | Malayan Banking vs. Hong Leong Bank | Malayan Banking vs. Sports Toto Berhad |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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