Correlation Between Carlsberg Brewery and Tambun Indah
Can any of the company-specific risk be diversified away by investing in both Carlsberg Brewery and Tambun Indah 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 Tambun Indah 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 Tambun Indah Land, you can compare the effects of market volatilities on Carlsberg Brewery and Tambun Indah 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 Tambun Indah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg Brewery and Tambun Indah.
Diversification Opportunities for Carlsberg Brewery and Tambun Indah
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlsberg and Tambun is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg Brewery Malaysia and Tambun Indah Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tambun Indah Land 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 Tambun Indah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tambun Indah Land has no effect on the direction of Carlsberg Brewery i.e., Carlsberg Brewery and Tambun Indah go up and down completely randomly.
Pair Corralation between Carlsberg Brewery and Tambun Indah
Assuming the 90 days trading horizon Carlsberg Brewery Malaysia is expected to under-perform the Tambun Indah. But the stock apears to be less risky and, when comparing its historical volatility, Carlsberg Brewery Malaysia is 1.54 times less risky than Tambun Indah. The stock trades about -0.34 of its potential returns per unit of risk. The Tambun Indah Land is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 91.00 in Tambun Indah Land on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Tambun Indah Land or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg Brewery Malaysia vs. Tambun Indah Land
Performance |
| Timeline |
| Carlsberg Brewery |
| Tambun Indah Land |
Carlsberg Brewery and Tambun Indah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg Brewery and Tambun Indah
The main advantage of trading using opposite Carlsberg Brewery and Tambun Indah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg Brewery position performs unexpectedly, Tambun Indah 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 Tambun Indah will offset losses from the drop in Tambun Indah's long position.| Carlsberg Brewery vs. Star Media Group | Carlsberg Brewery vs. Computer Forms Bhd | Carlsberg Brewery vs. Choo Bee Metal | Carlsberg Brewery vs. PMB Technology Bhd |
| Tambun Indah vs. Sunzen Biotech Bhd | Tambun Indah vs. SSF Home Group | Tambun Indah vs. Cosmos Technology International | Tambun Indah vs. K One Technology 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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