Correlation Between Al Aqar and Sports Toto
Can any of the company-specific risk be diversified away by investing in both Al Aqar and Sports Toto 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 Al Aqar and Sports Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Al Aqar Healthcare and Sports Toto Berhad, you can compare the effects of market volatilities on Al Aqar and Sports Toto 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 Al Aqar with a short position of Sports Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Al Aqar and Sports Toto.
Diversification Opportunities for Al Aqar and Sports Toto
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 5116 and Sports is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Al Aqar Healthcare and Sports Toto Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sports Toto Berhad and Al Aqar 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 Al Aqar Healthcare are associated (or correlated) with Sports Toto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sports Toto Berhad has no effect on the direction of Al Aqar i.e., Al Aqar and Sports Toto go up and down completely randomly.
Pair Corralation between Al Aqar and Sports Toto
Assuming the 90 days trading horizon Al Aqar is expected to generate 1.14 times less return on investment than Sports Toto. But when comparing it to its historical volatility, Al Aqar Healthcare is 1.5 times less risky than Sports Toto. It trades about 0.04 of its potential returns per unit of risk. Sports Toto Berhad is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 127.00 in Sports Toto Berhad on August 31, 2024 and sell it today you would earn a total of 18.00 from holding Sports Toto Berhad or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Al Aqar Healthcare vs. Sports Toto Berhad
Performance |
| Timeline |
| Al Aqar Healthcare |
| Sports Toto Berhad |
Al Aqar and Sports Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Al Aqar and Sports Toto
The main advantage of trading using opposite Al Aqar and Sports Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Al Aqar position performs unexpectedly, Sports Toto 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 Sports Toto will offset losses from the drop in Sports Toto's long position.| Al Aqar vs. YTL Hospitality REIT | Al Aqar vs. Digistar Bhd | Al Aqar vs. Minetech Resources Bhd | Al Aqar vs. Swift Haulage Bhd |
| Sports Toto vs. Impiana Hotels Bhd | Sports Toto vs. Digistar Bhd | Sports Toto vs. Minetech Resources Bhd | Sports Toto vs. Swift Haulage 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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