Correlation Between Star Media and Advance Information
Can any of the company-specific risk be diversified away by investing in both Star Media and Advance Information 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 Star Media and Advance Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Media Group and Advance Information Marketing, you can compare the effects of market volatilities on Star Media and Advance Information 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 Star Media with a short position of Advance Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Media and Advance Information.
Diversification Opportunities for Star Media and Advance Information
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Star and Advance is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Star Media Group and Advance Information Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advance Information and Star Media 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 Star Media Group are associated (or correlated) with Advance Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advance Information has no effect on the direction of Star Media i.e., Star Media and Advance Information go up and down completely randomly.
Pair Corralation between Star Media and Advance Information
Assuming the 90 days trading horizon Star Media Group is expected to under-perform the Advance Information. But the stock apears to be less risky and, when comparing its historical volatility, Star Media Group is 2.86 times less risky than Advance Information. The stock trades about -0.1 of its potential returns per unit of risk. The Advance Information Marketing is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7.00 in Advance Information Marketing on September 2, 2024 and sell it today you would earn a total of 0.50 from holding Advance Information Marketing or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Media Group vs. Advance Information Marketing
Performance |
| Timeline |
| Star Media Group |
| Advance Information |
Star Media and Advance Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Media and Advance Information
The main advantage of trading using opposite Star Media and Advance Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Media position performs unexpectedly, Advance Information 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 Advance Information will offset losses from the drop in Advance Information's long position.| Star Media vs. Sunzen Biotech Bhd | Star Media vs. Uchi Technologies Bhd | Star Media vs. PIE Industrial Bhd | Star Media vs. YX Precious Metals |
| Advance Information vs. ES Ceramics Technology | Advance Information vs. CSC Steel Holdings | Advance Information vs. Awanbiru Technology Bhd | Advance Information vs. Malaysia Steel Works |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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