Correlation Between Protasco Bhd and Shangri La
Can any of the company-specific risk be diversified away by investing in both Protasco Bhd and Shangri La 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 Protasco Bhd and Shangri La into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protasco Bhd and Shangri La Hotels, you can compare the effects of market volatilities on Protasco Bhd and Shangri La 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 Protasco Bhd with a short position of Shangri La. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protasco Bhd and Shangri La.
Diversification Opportunities for Protasco Bhd and Shangri La
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Protasco and Shangri is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Protasco Bhd and Shangri La Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shangri La Hotels and Protasco 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 Protasco Bhd are associated (or correlated) with Shangri La. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shangri La Hotels has no effect on the direction of Protasco Bhd i.e., Protasco Bhd and Shangri La go up and down completely randomly.
Pair Corralation between Protasco Bhd and Shangri La
Assuming the 90 days trading horizon Protasco Bhd is expected to generate 2.22 times more return on investment than Shangri La. However, Protasco Bhd is 2.22 times more volatile than Shangri La Hotels. It trades about 0.03 of its potential returns per unit of risk. Shangri La Hotels is currently generating about -0.05 per unit of risk. If you would invest 19.00 in Protasco Bhd on August 24, 2024 and sell it today you would earn a total of 4.00 from holding Protasco Bhd or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Protasco Bhd vs. Shangri La Hotels
Performance |
| Timeline |
| Protasco Bhd |
| Shangri La Hotels |
Protasco Bhd and Shangri La Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protasco Bhd and Shangri La
The main advantage of trading using opposite Protasco Bhd and Shangri La positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protasco Bhd position performs unexpectedly, Shangri La 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 Shangri La will offset losses from the drop in Shangri La's long position.| Protasco Bhd vs. Pantech Group Holdings | Protasco Bhd vs. Uchi Technologies Bhd | Protasco Bhd vs. Supercomnet Technologies Bhd | Protasco Bhd vs. Duopharma Biotech Bhd |
| Shangri La vs. Scientex Packaging | Shangri La vs. UNIQUE | Shangri La vs. Dnonce Tech Bhd | Shangri La vs. Protasco 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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