Correlation Between EA Technique and Sports Toto
Can any of the company-specific risk be diversified away by investing in both EA Technique 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 EA Technique and Sports Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Technique M and Sports Toto Berhad, you can compare the effects of market volatilities on EA Technique 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 EA Technique with a short position of Sports Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Technique and Sports Toto.
Diversification Opportunities for EA Technique and Sports Toto
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 5259 and Sports is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding EA Technique M 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 EA Technique 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 EA Technique M 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 EA Technique i.e., EA Technique and Sports Toto go up and down completely randomly.
Pair Corralation between EA Technique and Sports Toto
Assuming the 90 days trading horizon EA Technique M is expected to generate 3.4 times more return on investment than Sports Toto. However, EA Technique is 3.4 times more volatile than Sports Toto Berhad. It trades about 0.06 of its potential returns per unit of risk. Sports Toto Berhad is currently generating about 0.03 per unit of risk. If you would invest 16.00 in EA Technique M on August 31, 2024 and sell it today you would earn a total of 14.00 from holding EA Technique M or generate 87.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EA Technique M vs. Sports Toto Berhad
Performance |
| Timeline |
| EA Technique M |
| Sports Toto Berhad |
EA Technique and Sports Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Technique and Sports Toto
The main advantage of trading using opposite EA Technique and Sports Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Technique 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.| EA Technique vs. Digistar Bhd | EA Technique vs. Minetech Resources Bhd | EA Technique vs. Swift Haulage Bhd | EA Technique vs. Bina Darulaman 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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