Correlation Between Carlsberg Brewery and Daya Materials
Can any of the company-specific risk be diversified away by investing in both Carlsberg Brewery and Daya Materials 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 Carlsberg Brewery and Daya Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg Brewery Malaysia and Daya Materials Bhd, you can compare the effects of market volatilities on Carlsberg Brewery and Daya Materials 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 Carlsberg Brewery with a short position of Daya Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg Brewery and Daya Materials.
Diversification Opportunities for Carlsberg Brewery and Daya Materials
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlsberg and Daya is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg Brewery Malaysia and Daya Materials Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daya Materials Bhd and Carlsberg Brewery 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 Carlsberg Brewery Malaysia are associated (or correlated) with Daya Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daya Materials Bhd has no effect on the direction of Carlsberg Brewery i.e., Carlsberg Brewery and Daya Materials go up and down completely randomly.
Pair Corralation between Carlsberg Brewery and Daya Materials
Assuming the 90 days trading horizon Carlsberg Brewery Malaysia is expected to generate 0.22 times more return on investment than Daya Materials. However, Carlsberg Brewery Malaysia is 4.61 times less risky than Daya Materials. It trades about -0.03 of its potential returns per unit of risk. Daya Materials Bhd is currently generating about -0.02 per unit of risk. If you would invest 2,241 in Carlsberg Brewery Malaysia on November 4, 2024 and sell it today you would lose (257.00) from holding Carlsberg Brewery Malaysia or give up 11.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg Brewery Malaysia vs. Daya Materials Bhd
Performance |
| Timeline |
| Carlsberg Brewery |
| Daya Materials Bhd |
Carlsberg Brewery and Daya Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg Brewery and Daya Materials
The main advantage of trading using opposite Carlsberg Brewery and Daya Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg Brewery position performs unexpectedly, Daya Materials 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 Daya Materials will offset losses from the drop in Daya Materials' long position.| Carlsberg Brewery vs. Impiana Hotels Bhd | Carlsberg Brewery vs. CPE Technology Berhad | Carlsberg Brewery vs. Farm Price Holdings | Carlsberg Brewery vs. IHH Healthcare Bhd |
| Daya Materials vs. Carlsberg Brewery Malaysia | Daya Materials vs. Eonmetall Group Bhd | Daya Materials vs. Silver Ridge Holdings | Daya Materials vs. Supercomnet Technologies 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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