Correlation Between Sports Toto and BP Plastics
Can any of the company-specific risk be diversified away by investing in both Sports Toto and BP Plastics 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 BP Plastics 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 BP Plastics Holding, you can compare the effects of market volatilities on Sports Toto and BP Plastics 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 BP Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sports Toto and BP Plastics.
Diversification Opportunities for Sports Toto and BP Plastics
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sports and 5100 is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sports Toto Berhad and BP Plastics Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BP Plastics Holding 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 BP Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BP Plastics Holding has no effect on the direction of Sports Toto i.e., Sports Toto and BP Plastics go up and down completely randomly.
Pair Corralation between Sports Toto and BP Plastics
Assuming the 90 days trading horizon Sports Toto Berhad is expected to generate 0.63 times more return on investment than BP Plastics. However, Sports Toto Berhad is 1.59 times less risky than BP Plastics. It trades about 0.2 of its potential returns per unit of risk. BP Plastics Holding is currently generating about 0.0 per unit of risk. If you would invest 146.00 in Sports Toto Berhad on October 26, 2024 and sell it today you would earn a total of 13.00 from holding Sports Toto Berhad or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Sports Toto Berhad vs. BP Plastics Holding
Performance |
| Timeline |
| Sports Toto Berhad |
| BP Plastics Holding |
Sports Toto and BP Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sports Toto and BP Plastics
The main advantage of trading using opposite Sports Toto and BP Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sports Toto position performs unexpectedly, BP Plastics 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 BP Plastics will offset losses from the drop in BP Plastics' long position.| Sports Toto vs. PMB Technology Bhd | Sports Toto vs. YX Precious Metals | Sports Toto vs. CPE Technology Berhad | Sports Toto vs. Carlsberg Brewery Malaysia |
| BP Plastics vs. Kossan Rubber Industries | BP Plastics vs. Sports Toto Berhad | BP Plastics vs. Leader Steel Holdings | BP Plastics vs. Choo Bee Metal |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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