Correlation Between Kobay Tech and Media Prima
Can any of the company-specific risk be diversified away by investing in both Kobay Tech 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 Kobay Tech and Media Prima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kobay Tech Bhd and Media Prima Bhd, you can compare the effects of market volatilities on Kobay Tech 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 Kobay Tech with a short position of Media Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kobay Tech and Media Prima.
Diversification Opportunities for Kobay Tech and Media Prima
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kobay and Media is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Kobay Tech Bhd 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 Kobay Tech 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 Kobay Tech Bhd 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 Kobay Tech i.e., Kobay Tech and Media Prima go up and down completely randomly.
Pair Corralation between Kobay Tech and Media Prima
Assuming the 90 days trading horizon Kobay Tech Bhd is expected to under-perform the Media Prima. In addition to that, Kobay Tech is 2.45 times more volatile than Media Prima Bhd. It trades about -0.08 of its total potential returns per unit of risk. Media Prima Bhd is currently generating about 0.04 per unit of volatility. If you would invest 45.00 in Media Prima Bhd on October 26, 2024 and sell it today you would earn a total of 3.00 from holding Media Prima Bhd or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kobay Tech Bhd vs. Media Prima Bhd
Performance |
| Timeline |
| Kobay Tech Bhd |
| Media Prima Bhd |
Kobay Tech and Media Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kobay Tech and Media Prima
The main advantage of trading using opposite Kobay Tech and Media Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kobay Tech 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.| Kobay Tech vs. Rubberex M | Kobay Tech vs. Public Bank Bhd | Kobay Tech vs. SSF Home Group | Kobay Tech vs. Star Media Group |
| Media Prima vs. Kobay Tech Bhd | Media Prima vs. Malaysia Steel Works | Media Prima vs. Aurelius Technologies Bhd | Media Prima vs. Leader Steel Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stocks Directory Find actively traded stocks across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |