Correlation Between Sunway Construction and Sports Toto
Can any of the company-specific risk be diversified away by investing in both Sunway Construction 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 Sunway Construction and Sports Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunway Construction Group and Sports Toto Berhad, you can compare the effects of market volatilities on Sunway Construction 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 Sunway Construction with a short position of Sports Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunway Construction and Sports Toto.
Diversification Opportunities for Sunway Construction and Sports Toto
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunway and Sports is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sunway Construction Group 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 Sunway Construction 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 Sunway Construction Group 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 Sunway Construction i.e., Sunway Construction and Sports Toto go up and down completely randomly.
Pair Corralation between Sunway Construction and Sports Toto
Assuming the 90 days trading horizon Sunway Construction Group is expected to generate 1.35 times more return on investment than Sports Toto. However, Sunway Construction is 1.35 times more volatile than Sports Toto Berhad. It trades about 0.08 of its potential returns per unit of risk. Sports Toto Berhad is currently generating about -0.28 per unit of risk. If you would invest 428.00 in Sunway Construction Group on September 3, 2024 and sell it today you would earn a total of 12.00 from holding Sunway Construction Group or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunway Construction Group vs. Sports Toto Berhad
Performance |
| Timeline |
| Sunway Construction |
| Sports Toto Berhad |
Sunway Construction and Sports Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunway Construction and Sports Toto
The main advantage of trading using opposite Sunway Construction and Sports Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunway Construction 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.| Sunway Construction vs. Pesona Metro Holdings | Sunway Construction vs. Ho Hup Construction | Sunway Construction vs. Central Industrial Corp |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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