Correlation Between Southern Steel and ATA IMS
Can any of the company-specific risk be diversified away by investing in both Southern Steel and ATA IMS 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 Southern Steel and ATA IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Steel Bhd and ATA IMS Bhd, you can compare the effects of market volatilities on Southern Steel and ATA IMS 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 Southern Steel with a short position of ATA IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Steel and ATA IMS.
Diversification Opportunities for Southern Steel and ATA IMS
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Southern and ATA is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Southern Steel Bhd and ATA IMS Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATA IMS Bhd and Southern Steel 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 Southern Steel Bhd are associated (or correlated) with ATA IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATA IMS Bhd has no effect on the direction of Southern Steel i.e., Southern Steel and ATA IMS go up and down completely randomly.
Pair Corralation between Southern Steel and ATA IMS
Assuming the 90 days trading horizon Southern Steel Bhd is expected to under-perform the ATA IMS. But the stock apears to be less risky and, when comparing its historical volatility, Southern Steel Bhd is 2.99 times less risky than ATA IMS. The stock trades about -0.25 of its potential returns per unit of risk. The ATA IMS Bhd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 30.00 in ATA IMS Bhd on November 28, 2024 and sell it today you would earn a total of 0.00 from holding ATA IMS Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Southern Steel Bhd vs. ATA IMS Bhd
Performance |
| Timeline |
| Southern Steel Bhd |
| ATA IMS Bhd |
Southern Steel and ATA IMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Steel and ATA IMS
The main advantage of trading using opposite Southern Steel and ATA IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Steel position performs unexpectedly, ATA IMS 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 ATA IMS will offset losses from the drop in ATA IMS's long position.| Southern Steel vs. Kawan Food Bhd | Southern Steel vs. Carlsberg Brewery Malaysia | Southern Steel vs. Cloudpoint Technology Berhad | Southern Steel vs. Choo Bee Metal |
| ATA IMS vs. Central Industrial Corp | ATA IMS vs. Uchi Technologies Bhd | ATA IMS vs. CB Industrial Product | ATA IMS vs. Genetec Technology 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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