Correlation Between Aeon Credit and Sports Toto
Can any of the company-specific risk be diversified away by investing in both Aeon Credit 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 Aeon Credit and Sports Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeon Credit Service and Sports Toto Berhad, you can compare the effects of market volatilities on Aeon Credit 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 Aeon Credit with a short position of Sports Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeon Credit and Sports Toto.
Diversification Opportunities for Aeon Credit and Sports Toto
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aeon and Sports is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Aeon Credit Service 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 Aeon Credit 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 Aeon Credit Service 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 Aeon Credit i.e., Aeon Credit and Sports Toto go up and down completely randomly.
Pair Corralation between Aeon Credit and Sports Toto
Assuming the 90 days trading horizon Aeon Credit Service is expected to generate 0.81 times more return on investment than Sports Toto. However, Aeon Credit Service is 1.23 times less risky than Sports Toto. It trades about 0.03 of its potential returns per unit of risk. Sports Toto Berhad is currently generating about 0.01 per unit of risk. If you would invest 595.00 in Aeon Credit Service on August 28, 2024 and sell it today you would earn a total of 88.00 from holding Aeon Credit Service or generate 14.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeon Credit Service vs. Sports Toto Berhad
Performance |
| Timeline |
| Aeon Credit Service |
| Sports Toto Berhad |
Aeon Credit and Sports Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeon Credit and Sports Toto
The main advantage of trading using opposite Aeon Credit and Sports Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeon Credit 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.| Aeon Credit vs. Press Metal Bhd | Aeon Credit vs. Malayan Banking Bhd | Aeon Credit vs. Cengild Medical Berhad | Aeon Credit vs. Public Bank Bhd |
| Sports Toto vs. Digistar Bhd | Sports Toto vs. Minetech Resources Bhd | Sports Toto vs. OpenSys M Bhd | Sports Toto vs. Insas 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |