Correlation Between Petronas Chemicals and SSF Home
Can any of the company-specific risk be diversified away by investing in both Petronas Chemicals 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 Petronas Chemicals and SSF Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petronas Chemicals Group and SSF Home Group, you can compare the effects of market volatilities on Petronas Chemicals 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 Petronas Chemicals with a short position of SSF Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petronas Chemicals and SSF Home.
Diversification Opportunities for Petronas Chemicals and SSF Home
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Petronas and SSF is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Petronas Chemicals Group 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 Petronas Chemicals 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 Petronas Chemicals Group 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 Petronas Chemicals i.e., Petronas Chemicals and SSF Home go up and down completely randomly.
Pair Corralation between Petronas Chemicals and SSF Home
Assuming the 90 days trading horizon Petronas Chemicals Group is expected to under-perform the SSF Home. But the stock apears to be less risky and, when comparing its historical volatility, Petronas Chemicals Group is 1.75 times less risky than SSF Home. The stock trades about -0.16 of its potential returns per unit of risk. The SSF Home Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 35.00 in SSF Home Group on November 3, 2024 and sell it today you would earn a total of 2.00 from holding SSF Home Group or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petronas Chemicals Group vs. SSF Home Group
Performance |
| Timeline |
| Petronas Chemicals |
| SSF Home Group |
Petronas Chemicals and SSF Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petronas Chemicals and SSF Home
The main advantage of trading using opposite Petronas Chemicals and SSF Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petronas Chemicals 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.| Petronas Chemicals vs. Public Bank Bhd | Petronas Chemicals vs. DC HEALTHCARE HOLDINGS | Petronas Chemicals vs. Al Aqar Healthcare | Petronas Chemicals vs. Computer Forms Bhd |
| SSF Home vs. Eonmetall Group Bhd | SSF Home vs. Sports Toto Berhad | SSF Home vs. Malaysia Steel Works | SSF Home vs. Apex Healthcare 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |