Correlation Between Sports Toto and AirAsia X
Can any of the company-specific risk be diversified away by investing in both Sports Toto and AirAsia X 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 AirAsia X 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 AirAsia X Bhd, you can compare the effects of market volatilities on Sports Toto and AirAsia X 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 AirAsia X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sports Toto and AirAsia X.
Diversification Opportunities for Sports Toto and AirAsia X
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sports and AirAsia is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sports Toto Berhad and AirAsia X Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AirAsia X 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 AirAsia X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AirAsia X Bhd has no effect on the direction of Sports Toto i.e., Sports Toto and AirAsia X go up and down completely randomly.
Pair Corralation between Sports Toto and AirAsia X
Assuming the 90 days trading horizon Sports Toto Berhad is expected to generate 0.5 times more return on investment than AirAsia X. However, Sports Toto Berhad is 2.0 times less risky than AirAsia X. It trades about 0.02 of its potential returns per unit of risk. AirAsia X Bhd is currently generating about 0.0 per unit of risk. If you would invest 140.00 in Sports Toto Berhad on September 15, 2024 and sell it today you would earn a total of 8.00 from holding Sports Toto Berhad or generate 5.71% 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. AirAsia X Bhd
Performance |
| Timeline |
| Sports Toto Berhad |
| AirAsia X Bhd |
Sports Toto and AirAsia X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sports Toto and AirAsia X
The main advantage of trading using opposite Sports Toto and AirAsia X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sports Toto position performs unexpectedly, AirAsia X 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 AirAsia X will offset losses from the drop in AirAsia X's long position.| Sports Toto vs. Impiana Hotels Bhd | Sports Toto vs. Al Aqar Healthcare | Sports Toto vs. PMB Technology Bhd | Sports Toto vs. Digistar Bhd |
| AirAsia X vs. Public Packages Holdings | AirAsia X vs. Binasat Communications Bhd | AirAsia X vs. Awanbiru Technology Bhd | AirAsia X 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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