Correlation Between Media Prima and MI Technovation
Can any of the company-specific risk be diversified away by investing in both Media Prima and MI Technovation 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 Media Prima and MI Technovation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media Prima Bhd and MI Technovation Bhd, you can compare the effects of market volatilities on Media Prima and MI Technovation 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 Media Prima with a short position of MI Technovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media Prima and MI Technovation.
Diversification Opportunities for Media Prima and MI Technovation
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Media and 5286 is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Media Prima Bhd and MI Technovation Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MI Technovation Bhd and Media Prima 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 Media Prima Bhd are associated (or correlated) with MI Technovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MI Technovation Bhd has no effect on the direction of Media Prima i.e., Media Prima and MI Technovation go up and down completely randomly.
Pair Corralation between Media Prima and MI Technovation
Assuming the 90 days trading horizon Media Prima Bhd is expected to generate 0.57 times more return on investment than MI Technovation. However, Media Prima Bhd is 1.74 times less risky than MI Technovation. It trades about 0.01 of its potential returns per unit of risk. MI Technovation Bhd is currently generating about -0.04 per unit of risk. 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 |
Media Prima Bhd vs. MI Technovation Bhd
Performance |
| Timeline |
| Media Prima Bhd |
| MI Technovation Bhd |
Media Prima and MI Technovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media Prima and MI Technovation
The main advantage of trading using opposite Media Prima and MI Technovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media Prima position performs unexpectedly, MI Technovation 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 MI Technovation will offset losses from the drop in MI Technovation's long position.| Media Prima vs. Cengild Medical Berhad | Media Prima vs. Southern Steel Bhd | Media Prima vs. CB Industrial Product | Media Prima vs. Mycron Steel Bhd |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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