Correlation Between EA Technique and Media Prima
Can any of the company-specific risk be diversified away by investing in both EA Technique and Media Prima 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 Media Prima 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 Media Prima Bhd, you can compare the effects of market volatilities on EA Technique and Media Prima 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 Media Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Technique and Media Prima.
Diversification Opportunities for EA Technique and Media Prima
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 5259 and Media is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding EA Technique M and Media Prima Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Prima Bhd 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 Media Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Prima Bhd has no effect on the direction of EA Technique i.e., EA Technique and Media Prima go up and down completely randomly.
Pair Corralation between EA Technique and Media Prima
Assuming the 90 days trading horizon EA Technique is expected to generate 18.98 times less return on investment than Media Prima. In addition to that, EA Technique is 1.32 times more volatile than Media Prima Bhd. It trades about 0.0 of its total potential returns per unit of risk. Media Prima Bhd is currently generating about 0.12 per unit of volatility. If you would invest 47.00 in Media Prima Bhd on August 30, 2024 and sell it today you would earn a total of 1.00 from holding Media Prima Bhd or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EA Technique M vs. Media Prima Bhd
Performance |
| Timeline |
| EA Technique M |
| Media Prima Bhd |
EA Technique and Media Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Technique and Media Prima
The main advantage of trading using opposite EA Technique and Media Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Technique position performs unexpectedly, Media Prima 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 Media Prima will offset losses from the drop in Media Prima's long position.| EA Technique vs. Digistar Bhd | EA Technique vs. AirAsia X Bhd | EA Technique vs. Tambun Indah Land | EA Technique 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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