Correlation Between Sports Toto and Al Aqar
Can any of the company-specific risk be diversified away by investing in both Sports Toto and Al Aqar 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 Al Aqar 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 Al Aqar Healthcare, you can compare the effects of market volatilities on Sports Toto and Al Aqar 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 Al Aqar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sports Toto and Al Aqar.
Diversification Opportunities for Sports Toto and Al Aqar
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sports and 5116 is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sports Toto Berhad and Al Aqar Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Aqar Healthcare 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 Al Aqar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Aqar Healthcare has no effect on the direction of Sports Toto i.e., Sports Toto and Al Aqar go up and down completely randomly.
Pair Corralation between Sports Toto and Al Aqar
Assuming the 90 days trading horizon Sports Toto Berhad is expected to under-perform the Al Aqar. In addition to that, Sports Toto is 2.13 times more volatile than Al Aqar Healthcare. It trades about -0.12 of its total potential returns per unit of risk. Al Aqar Healthcare is currently generating about -0.23 per unit of volatility. If you would invest 141.00 in Al Aqar Healthcare on August 28, 2024 and sell it today you would lose (5.00) from holding Al Aqar Healthcare or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sports Toto Berhad vs. Al Aqar Healthcare
Performance |
| Timeline |
| Sports Toto Berhad |
| Al Aqar Healthcare |
Sports Toto and Al Aqar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sports Toto and Al Aqar
The main advantage of trading using opposite Sports Toto and Al Aqar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sports Toto position performs unexpectedly, Al Aqar 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 Al Aqar will offset losses from the drop in Al Aqar's long position.| Sports Toto vs. Digistar Bhd | Sports Toto vs. Minetech Resources Bhd | Sports Toto vs. OpenSys M Bhd | Sports Toto vs. Insas Bhd |
| Al Aqar vs. Digistar Bhd | Al Aqar vs. Minetech Resources Bhd | Al Aqar vs. OpenSys M Bhd | Al Aqar 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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