Correlation Between Sports Toto and Hartalega Holdings
Can any of the company-specific risk be diversified away by investing in both Sports Toto and Hartalega Holdings 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 Hartalega Holdings 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 Hartalega Holdings Bhd, you can compare the effects of market volatilities on Sports Toto and Hartalega Holdings 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 Hartalega Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sports Toto and Hartalega Holdings.
Diversification Opportunities for Sports Toto and Hartalega Holdings
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sports and Hartalega is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sports Toto Berhad and Hartalega Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartalega Holdings 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 Hartalega Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartalega Holdings Bhd has no effect on the direction of Sports Toto i.e., Sports Toto and Hartalega Holdings go up and down completely randomly.
Pair Corralation between Sports Toto and Hartalega Holdings
Assuming the 90 days trading horizon Sports Toto is expected to generate 51.52 times less return on investment than Hartalega Holdings. But when comparing it to its historical volatility, Sports Toto Berhad is 3.24 times less risky than Hartalega Holdings. It trades about 0.01 of its potential returns per unit of risk. Hartalega Holdings Bhd is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 241.00 in Hartalega Holdings Bhd on November 3, 2024 and sell it today you would earn a total of 90.00 from holding Hartalega Holdings Bhd or generate 37.34% 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. Hartalega Holdings Bhd
Performance |
| Timeline |
| Sports Toto Berhad |
| Hartalega Holdings Bhd |
Sports Toto and Hartalega Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sports Toto and Hartalega Holdings
The main advantage of trading using opposite Sports Toto and Hartalega Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sports Toto position performs unexpectedly, Hartalega Holdings 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 Hartalega Holdings will offset losses from the drop in Hartalega Holdings' 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 |
| Hartalega Holdings vs. Farm Price Holdings | Hartalega Holdings vs. Dufu Tech Corp | Hartalega Holdings vs. Apollo Food Holdings | Hartalega Holdings vs. Systech 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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