Correlation Between Carlsberg Brewery and Media Prima
Can any of the company-specific risk be diversified away by investing in both Carlsberg Brewery and Media Prima 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 Media Prima 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 Media Prima Bhd, you can compare the effects of market volatilities on Carlsberg Brewery and Media Prima 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 Media Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg Brewery and Media Prima.
Diversification Opportunities for Carlsberg Brewery and Media Prima
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlsberg and Media is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg Brewery Malaysia and Media Prima Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Prima 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 Media Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Prima Bhd has no effect on the direction of Carlsberg Brewery i.e., Carlsberg Brewery and Media Prima go up and down completely randomly.
Pair Corralation between Carlsberg Brewery and Media Prima
Assuming the 90 days trading horizon Carlsberg Brewery Malaysia is expected to under-perform the Media Prima. But the stock apears to be less risky and, when comparing its historical volatility, Carlsberg Brewery Malaysia is 2.26 times less risky than Media Prima. The stock trades about -0.35 of its potential returns per unit of risk. The Media Prima Bhd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 47.00 in Media Prima Bhd on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Media Prima Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg Brewery Malaysia vs. Media Prima Bhd
Performance |
| Timeline |
| Carlsberg Brewery |
| Media Prima Bhd |
Carlsberg Brewery and Media Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg Brewery and Media Prima
The main advantage of trading using opposite Carlsberg Brewery and Media Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg Brewery position performs unexpectedly, Media Prima 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 Media Prima will offset losses from the drop in Media Prima's long position.| Carlsberg Brewery vs. Sapura Industrial Bhd | Carlsberg Brewery vs. Press Metal Bhd | Carlsberg Brewery vs. Mercury Industries Bhd | Carlsberg Brewery vs. Binasat Communications Bhd |
| Media Prima vs. Cengild Medical Berhad | Media Prima vs. Southern Steel Bhd | Media Prima vs. CB Industrial Product | Media Prima vs. Mycron Steel 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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