Correlation Between Choo Bee and Media Prima
Can any of the company-specific risk be diversified away by investing in both Choo Bee 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 Choo Bee and Media Prima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Choo Bee Metal and Media Prima Bhd, you can compare the effects of market volatilities on Choo Bee 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 Choo Bee with a short position of Media Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choo Bee and Media Prima.
Diversification Opportunities for Choo Bee and Media Prima
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Choo and Media is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Choo Bee Metal 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 Choo Bee 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 Choo Bee Metal 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 Choo Bee i.e., Choo Bee and Media Prima go up and down completely randomly.
Pair Corralation between Choo Bee and Media Prima
Assuming the 90 days trading horizon Choo Bee Metal is expected to under-perform the Media Prima. But the stock apears to be less risky and, when comparing its historical volatility, Choo Bee Metal is 1.28 times less risky than Media Prima. The stock trades about -0.02 of its potential returns per unit of risk. The Media Prima Bhd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 43.00 in Media Prima Bhd on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Media Prima Bhd or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.33% |
| Values | Daily Returns |
Choo Bee Metal vs. Media Prima Bhd
Performance |
| Timeline |
| Choo Bee Metal |
| Media Prima Bhd |
Choo Bee and Media Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choo Bee and Media Prima
The main advantage of trading using opposite Choo Bee and Media Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choo Bee 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.The idea behind Choo Bee Metal and Media Prima Bhd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Media Prima vs. Diversified Gateway Solutions | Media Prima vs. Supercomnet Technologies Bhd | Media Prima vs. ONETECH SOLUTIONS HOLDINGS | Media Prima vs. Uchi Technologies 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |