Correlation Between Media Prima and Top Glove
Can any of the company-specific risk be diversified away by investing in both Media Prima and Top Glove 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 Top Glove 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 Top Glove, you can compare the effects of market volatilities on Media Prima and Top Glove 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 Top Glove. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media Prima and Top Glove.
Diversification Opportunities for Media Prima and Top Glove
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Media and Top is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Media Prima Bhd and Top Glove in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Top Glove 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 Top Glove. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Top Glove has no effect on the direction of Media Prima i.e., Media Prima and Top Glove go up and down completely randomly.
Pair Corralation between Media Prima and Top Glove
Assuming the 90 days trading horizon Media Prima is expected to generate 2.74 times less return on investment than Top Glove. But when comparing it to its historical volatility, Media Prima Bhd is 1.51 times less risky than Top Glove. It trades about 0.0 of its potential returns per unit of risk. Top Glove is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 101.00 in Top Glove on January 18, 2025 and sell it today you would lose (14.00) from holding Top Glove or give up 13.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.31% |
| Values | Daily Returns |
Media Prima Bhd vs. Top Glove
Performance |
| Timeline |
| Media Prima Bhd |
| Top Glove |
Media Prima and Top Glove Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media Prima and Top Glove
The main advantage of trading using opposite Media Prima and Top Glove positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media Prima position performs unexpectedly, Top Glove 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 Top Glove will offset losses from the drop in Top Glove's long position.| Media Prima vs. Eonmetall Group Bhd | Media Prima vs. CPE Technology Berhad | Media Prima vs. KPJ Healthcare Bhd | Media Prima vs. Icon Offshore Bhd |
| Top Glove vs. Awanbiru Technology Bhd | Top Glove vs. ONETECH SOLUTIONS HOLDINGS | Top Glove vs. Sanichi Technology Bhd | Top Glove vs. Greatech 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |