Correlation Between Insas Bhd and Sports Toto
Can any of the company-specific risk be diversified away by investing in both Insas Bhd and Sports Toto 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 Insas Bhd and Sports Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insas Bhd and Sports Toto Berhad, you can compare the effects of market volatilities on Insas Bhd and Sports Toto 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 Insas Bhd with a short position of Sports Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insas Bhd and Sports Toto.
Diversification Opportunities for Insas Bhd and Sports Toto
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Insas and Sports is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Insas Bhd and Sports Toto Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sports Toto Berhad and Insas Bhd 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 Insas Bhd are associated (or correlated) with Sports Toto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sports Toto Berhad has no effect on the direction of Insas Bhd i.e., Insas Bhd and Sports Toto go up and down completely randomly.
Pair Corralation between Insas Bhd and Sports Toto
Assuming the 90 days trading horizon Insas Bhd is expected to generate 1.31 times more return on investment than Sports Toto. However, Insas Bhd is 1.31 times more volatile than Sports Toto Berhad. It trades about 0.03 of its potential returns per unit of risk. Sports Toto Berhad is currently generating about 0.01 per unit of risk. If you would invest 76.00 in Insas Bhd on August 27, 2024 and sell it today you would earn a total of 16.00 from holding Insas Bhd or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insas Bhd vs. Sports Toto Berhad
Performance |
| Timeline |
| Insas Bhd |
| Sports Toto Berhad |
Insas Bhd and Sports Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insas Bhd and Sports Toto
The main advantage of trading using opposite Insas Bhd and Sports Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insas Bhd position performs unexpectedly, Sports Toto 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 Sports Toto will offset losses from the drop in Sports Toto's long position.| Insas Bhd vs. Malayan Banking Bhd | Insas Bhd vs. Public Bank Bhd | Insas Bhd vs. Petronas Chemicals Group | Insas Bhd vs. Tenaga Nasional Bhd |
| Sports Toto vs. Digistar Bhd | Sports Toto vs. Minetech Resources Bhd | Sports Toto vs. OpenSys M Bhd | Sports Toto vs. Insas 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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