Correlation Between Carlsberg Brewery and Malayan Banking
Can any of the company-specific risk be diversified away by investing in both Carlsberg Brewery and Malayan Banking 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 Malayan Banking 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 Malayan Banking Bhd, you can compare the effects of market volatilities on Carlsberg Brewery and Malayan Banking 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 Malayan Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg Brewery and Malayan Banking.
Diversification Opportunities for Carlsberg Brewery and Malayan Banking
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carlsberg and Malayan is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg Brewery Malaysia and Malayan Banking Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malayan Banking 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 Malayan Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malayan Banking Bhd has no effect on the direction of Carlsberg Brewery i.e., Carlsberg Brewery and Malayan Banking go up and down completely randomly.
Pair Corralation between Carlsberg Brewery and Malayan Banking
Assuming the 90 days trading horizon Carlsberg Brewery Malaysia is expected to under-perform the Malayan Banking. In addition to that, Carlsberg Brewery is 1.49 times more volatile than Malayan Banking Bhd. It trades about 0.0 of its total potential returns per unit of risk. Malayan Banking Bhd is currently generating about 0.1 per unit of volatility. If you would invest 761.00 in Malayan Banking Bhd on September 14, 2024 and sell it today you would earn a total of 253.00 from holding Malayan Banking Bhd or generate 33.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg Brewery Malaysia vs. Malayan Banking Bhd
Performance |
| Timeline |
| Carlsberg Brewery |
| Malayan Banking Bhd |
Carlsberg Brewery and Malayan Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg Brewery and Malayan Banking
The main advantage of trading using opposite Carlsberg Brewery and Malayan Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg Brewery position performs unexpectedly, Malayan Banking 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 Malayan Banking will offset losses from the drop in Malayan Banking's long position.| Carlsberg Brewery vs. Al Aqar Healthcare | Carlsberg Brewery vs. PMB Technology Bhd | Carlsberg Brewery vs. Digistar Bhd | Carlsberg Brewery vs. Minetech Resources Bhd |
| Malayan Banking vs. Carlsberg Brewery Malaysia | Malayan Banking vs. Impiana Hotels Bhd | Malayan Banking vs. Hong Leong Bank | Malayan Banking 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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