Correlation Between Mr D and Sports Toto
Can any of the company-specific risk be diversified away by investing in both Mr D 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 Mr D and Sports Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mr D I and Sports Toto Berhad, you can compare the effects of market volatilities on Mr D 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 Mr D with a short position of Sports Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mr D and Sports Toto.
Diversification Opportunities for Mr D and Sports Toto
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 5296 and Sports is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Mr D I 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 Mr D 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 Mr D I 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 Mr D i.e., Mr D and Sports Toto go up and down completely randomly.
Pair Corralation between Mr D and Sports Toto
Assuming the 90 days trading horizon Mr D I is expected to generate 1.35 times more return on investment than Sports Toto. However, Mr D is 1.35 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 0.02 per unit of risk. If you would invest 149.00 in Mr D I on September 4, 2024 and sell it today you would earn a total of 38.00 from holding Mr D I or generate 25.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mr D I vs. Sports Toto Berhad
Performance |
| Timeline |
| Mr D I |
| Sports Toto Berhad |
Mr D and Sports Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mr D and Sports Toto
The main advantage of trading using opposite Mr D and Sports Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mr D 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.| Mr D vs. Sports Toto Berhad | Mr D vs. Homeritz Bhd | Mr D vs. Star Media Group | Mr D vs. Sunway Construction Group |
| Sports Toto vs. Impiana Hotels Bhd | Sports Toto vs. MClean Technologies Bhd | Sports Toto vs. Uchi Technologies Bhd | Sports Toto vs. Sapura Industrial 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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