Correlation Between Shangri La and Malaysia Airport
Can any of the company-specific risk be diversified away by investing in both Shangri La and Malaysia Airport 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 Shangri La and Malaysia Airport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shangri La Hotels and Malaysia Airport Holdings, you can compare the effects of market volatilities on Shangri La and Malaysia Airport 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 Shangri La with a short position of Malaysia Airport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shangri La and Malaysia Airport.
Diversification Opportunities for Shangri La and Malaysia Airport
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shangri and Malaysia is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shangri La Hotels and Malaysia Airport Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malaysia Airport Holdings and Shangri La 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 Shangri La Hotels are associated (or correlated) with Malaysia Airport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malaysia Airport Holdings has no effect on the direction of Shangri La i.e., Shangri La and Malaysia Airport go up and down completely randomly.
Pair Corralation between Shangri La and Malaysia Airport
Assuming the 90 days trading horizon Shangri La Hotels is expected to under-perform the Malaysia Airport. But the stock apears to be less risky and, when comparing its historical volatility, Shangri La Hotels is 1.2 times less risky than Malaysia Airport. The stock trades about -0.13 of its potential returns per unit of risk. The Malaysia Airport Holdings is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,020 in Malaysia Airport Holdings on August 28, 2024 and sell it today you would earn a total of 44.00 from holding Malaysia Airport Holdings or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shangri La Hotels vs. Malaysia Airport Holdings
Performance |
| Timeline |
| Shangri La Hotels |
| Malaysia Airport Holdings |
Shangri La and Malaysia Airport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shangri La and Malaysia Airport
The main advantage of trading using opposite Shangri La and Malaysia Airport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shangri La position performs unexpectedly, Malaysia Airport 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 Malaysia Airport will offset losses from the drop in Malaysia Airport's long position.| Shangri La vs. CB Industrial Product | Shangri La vs. Mycron Steel Bhd | Shangri La vs. PIE Industrial Bhd | Shangri La vs. YX Precious Metals |
| Malaysia Airport vs. Binasat Communications Bhd | Malaysia Airport vs. Uchi Technologies Bhd | Malaysia Airport vs. Hong Leong Bank | Malaysia Airport vs. RHB Bank 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |