Correlation Between Mycron Steel and SSF Home
Can any of the company-specific risk be diversified away by investing in both Mycron Steel and SSF Home 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 Mycron Steel and SSF Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mycron Steel Bhd and SSF Home Group, you can compare the effects of market volatilities on Mycron Steel and SSF Home 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 Mycron Steel with a short position of SSF Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mycron Steel and SSF Home.
Diversification Opportunities for Mycron Steel and SSF Home
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mycron and SSF is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Mycron Steel Bhd and SSF Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSF Home Group and Mycron Steel 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 Mycron Steel Bhd are associated (or correlated) with SSF Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSF Home Group has no effect on the direction of Mycron Steel i.e., Mycron Steel and SSF Home go up and down completely randomly.
Pair Corralation between Mycron Steel and SSF Home
Assuming the 90 days trading horizon Mycron Steel is expected to generate 3.04 times less return on investment than SSF Home. In addition to that, Mycron Steel is 1.23 times more volatile than SSF Home Group. It trades about 0.02 of its total potential returns per unit of risk. SSF Home Group is currently generating about 0.06 per unit of volatility. If you would invest 25.00 in SSF Home Group on September 4, 2024 and sell it today you would earn a total of 9.00 from holding SSF Home Group or generate 36.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Mycron Steel Bhd vs. SSF Home Group
Performance |
| Timeline |
| Mycron Steel Bhd |
| SSF Home Group |
Mycron Steel and SSF Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mycron Steel and SSF Home
The main advantage of trading using opposite Mycron Steel and SSF Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mycron Steel position performs unexpectedly, SSF Home 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 SSF Home will offset losses from the drop in SSF Home's long position.| Mycron Steel vs. Sunzen Biotech Bhd | Mycron Steel vs. Choo Bee Metal | Mycron Steel vs. Radiant Globaltech Bhd | Mycron Steel vs. Supercomnet Technologies Bhd |
| SSF Home vs. Star Media Group | SSF Home vs. Petronas Chemicals Group | SSF Home vs. Senheng New Retail | SSF Home vs. Silver Ridge Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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