Correlation Between Axiata Group and TIME Dotcom
Can any of the company-specific risk be diversified away by investing in both Axiata Group and TIME Dotcom 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 Axiata Group and TIME Dotcom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axiata Group Bhd and TIME Dotcom Bhd, you can compare the effects of market volatilities on Axiata Group and TIME Dotcom 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 Axiata Group with a short position of TIME Dotcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axiata Group and TIME Dotcom.
Diversification Opportunities for Axiata Group and TIME Dotcom
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axiata and TIME is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Axiata Group Bhd and TIME Dotcom Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIME Dotcom Bhd and Axiata Group 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 Axiata Group Bhd are associated (or correlated) with TIME Dotcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIME Dotcom Bhd has no effect on the direction of Axiata Group i.e., Axiata Group and TIME Dotcom go up and down completely randomly.
Pair Corralation between Axiata Group and TIME Dotcom
Assuming the 90 days trading horizon Axiata Group Bhd is expected to generate 0.72 times more return on investment than TIME Dotcom. However, Axiata Group Bhd is 1.38 times less risky than TIME Dotcom. It trades about 0.23 of its potential returns per unit of risk. TIME Dotcom Bhd is currently generating about -0.11 per unit of risk. If you would invest 227.00 in Axiata Group Bhd on September 17, 2024 and sell it today you would earn a total of 10.00 from holding Axiata Group Bhd or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axiata Group Bhd vs. TIME Dotcom Bhd
Performance |
| Timeline |
| Axiata Group Bhd |
| TIME Dotcom Bhd |
Axiata Group and TIME Dotcom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axiata Group and TIME Dotcom
The main advantage of trading using opposite Axiata Group and TIME Dotcom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axiata Group position performs unexpectedly, TIME Dotcom 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 TIME Dotcom will offset losses from the drop in TIME Dotcom's long position.| Axiata Group vs. Telekom Malaysia Bhd | Axiata Group vs. TIME Dotcom Bhd | Axiata Group vs. Binasat Communications Bhd |
| TIME Dotcom vs. YX Precious Metals | TIME Dotcom vs. Cengild Medical Berhad | TIME Dotcom vs. Diversified Gateway Solutions | TIME Dotcom vs. PMB 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Correlations Find global opportunities by holding instruments from different markets |