Correlation Between Star Media and Duopharma Biotech
Can any of the company-specific risk be diversified away by investing in both Star Media and Duopharma Biotech 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 Duopharma Biotech 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 Duopharma Biotech Bhd, you can compare the effects of market volatilities on Star Media and Duopharma Biotech 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 Duopharma Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Media and Duopharma Biotech.
Diversification Opportunities for Star Media and Duopharma Biotech
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Star and Duopharma is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Star Media Group and Duopharma Biotech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duopharma Biotech Bhd 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 Duopharma Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duopharma Biotech Bhd has no effect on the direction of Star Media i.e., Star Media and Duopharma Biotech go up and down completely randomly.
Pair Corralation between Star Media and Duopharma Biotech
Assuming the 90 days trading horizon Star Media Group is expected to generate 1.65 times more return on investment than Duopharma Biotech. However, Star Media is 1.65 times more volatile than Duopharma Biotech Bhd. It trades about 0.03 of its potential returns per unit of risk. Duopharma Biotech Bhd is currently generating about 0.03 per unit of risk. If you would invest 39.00 in Star Media Group on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Star Media Group or generate 5.13% 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. Duopharma Biotech Bhd
Performance |
| Timeline |
| Star Media Group |
| Duopharma Biotech Bhd |
Star Media and Duopharma Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Media and Duopharma Biotech
The main advantage of trading using opposite Star Media and Duopharma Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Media position performs unexpectedly, Duopharma Biotech 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 Duopharma Biotech will offset losses from the drop in Duopharma Biotech's long position.| Star Media vs. Media Prima Bhd | Star Media vs. Asia Media Group | Star Media vs. Advance Information Marketing |
| Duopharma Biotech vs. Farm Price Holdings | Duopharma Biotech vs. JF Technology BHD | Duopharma Biotech vs. Cloudpoint Technology Berhad | Duopharma Biotech vs. Computer Forms 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.
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