Correlation Between MISC Bhd and Media Prima
Can any of the company-specific risk be diversified away by investing in both MISC Bhd 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 MISC Bhd and Media Prima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MISC Bhd and Media Prima Bhd, you can compare the effects of market volatilities on MISC Bhd 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 MISC Bhd with a short position of Media Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of MISC Bhd and Media Prima.
Diversification Opportunities for MISC Bhd and Media Prima
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MISC and Media is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding MISC Bhd 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 MISC 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 MISC Bhd 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 MISC Bhd i.e., MISC Bhd and Media Prima go up and down completely randomly.
Pair Corralation between MISC Bhd and Media Prima
Assuming the 90 days trading horizon MISC Bhd is expected to under-perform the Media Prima. In addition to that, MISC Bhd is 1.6 times more volatile than Media Prima Bhd. It trades about -0.01 of its total potential returns per unit of risk. Media Prima Bhd is currently generating about 0.13 per unit of volatility. If you would invest 47.00 in Media Prima Bhd on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Media Prima Bhd or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MISC Bhd vs. Media Prima Bhd
Performance |
| Timeline |
| MISC Bhd |
| Media Prima Bhd |
MISC Bhd and Media Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MISC Bhd and Media Prima
The main advantage of trading using opposite MISC Bhd and Media Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MISC Bhd 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.| MISC Bhd vs. Sports Toto Berhad | MISC Bhd vs. BP Plastics Holding | MISC Bhd vs. Media Prima Bhd | MISC Bhd vs. Southern Steel Bhd |
| Media Prima vs. Binasat Communications Bhd | Media Prima vs. Petronas Chemicals Group | Media Prima vs. Shangri La Hotels | Media Prima vs. Lotte Chemical Titan |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |