Correlation Between Homeritz Bhd and ATA IMS
Can any of the company-specific risk be diversified away by investing in both Homeritz Bhd and ATA IMS 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 Homeritz Bhd and ATA IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Homeritz Bhd and ATA IMS Bhd, you can compare the effects of market volatilities on Homeritz Bhd and ATA IMS 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 Homeritz Bhd with a short position of ATA IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Homeritz Bhd and ATA IMS.
Diversification Opportunities for Homeritz Bhd and ATA IMS
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Homeritz and ATA is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Homeritz Bhd and ATA IMS Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATA IMS Bhd and Homeritz 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 Homeritz Bhd are associated (or correlated) with ATA IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATA IMS Bhd has no effect on the direction of Homeritz Bhd i.e., Homeritz Bhd and ATA IMS go up and down completely randomly.
Pair Corralation between Homeritz Bhd and ATA IMS
Assuming the 90 days trading horizon Homeritz Bhd is expected to generate 1.46 times less return on investment than ATA IMS. But when comparing it to its historical volatility, Homeritz Bhd is 3.03 times less risky than ATA IMS. It trades about 0.06 of its potential returns per unit of risk. ATA IMS Bhd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 26.00 in ATA IMS Bhd on September 12, 2024 and sell it today you would earn a total of 4.00 from holding ATA IMS Bhd or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.85% |
| Values | Daily Returns |
Homeritz Bhd vs. ATA IMS Bhd
Performance |
| Timeline |
| Homeritz Bhd |
| ATA IMS Bhd |
Homeritz Bhd and ATA IMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Homeritz Bhd and ATA IMS
The main advantage of trading using opposite Homeritz Bhd and ATA IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Homeritz Bhd position performs unexpectedly, ATA IMS 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 ATA IMS will offset losses from the drop in ATA IMS's long position.| Homeritz Bhd vs. Malayan Banking Bhd | Homeritz Bhd vs. Public Bank Bhd | Homeritz Bhd vs. Petronas Chemicals Group | Homeritz Bhd vs. Tenaga Nasional Bhd |
| ATA IMS vs. Computer Forms Bhd | ATA IMS vs. Sports Toto Berhad | ATA IMS vs. Homeritz Bhd | ATA IMS vs. SSF Home Group |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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