Correlation Between Globetronics Tech and Sports Toto
Can any of the company-specific risk be diversified away by investing in both Globetronics Tech and Sports Toto 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 Globetronics Tech and Sports Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globetronics Tech Bhd and Sports Toto Berhad, you can compare the effects of market volatilities on Globetronics Tech and Sports Toto 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 Globetronics Tech with a short position of Sports Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globetronics Tech and Sports Toto.
Diversification Opportunities for Globetronics Tech and Sports Toto
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Globetronics and Sports is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Globetronics Tech Bhd and Sports Toto Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sports Toto Berhad and Globetronics 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 Globetronics Tech Bhd are associated (or correlated) with Sports Toto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sports Toto Berhad has no effect on the direction of Globetronics Tech i.e., Globetronics Tech and Sports Toto go up and down completely randomly.
Pair Corralation between Globetronics Tech and Sports Toto
Assuming the 90 days trading horizon Globetronics Tech Bhd is expected to under-perform the Sports Toto. In addition to that, Globetronics Tech is 3.18 times more volatile than Sports Toto Berhad. It trades about -0.12 of its total potential returns per unit of risk. Sports Toto Berhad is currently generating about 0.32 per unit of volatility. If you would invest 146.00 in Sports Toto Berhad on October 20, 2024 and sell it today you would earn a total of 8.00 from holding Sports Toto Berhad or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globetronics Tech Bhd vs. Sports Toto Berhad
Performance |
| Timeline |
| Globetronics Tech Bhd |
| Sports Toto Berhad |
Globetronics Tech and Sports Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globetronics Tech and Sports Toto
The main advantage of trading using opposite Globetronics Tech and Sports Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globetronics Tech position performs unexpectedly, Sports Toto 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 Sports Toto will offset losses from the drop in Sports Toto's long position.| Globetronics Tech vs. PESTECH International Bhd | Globetronics Tech vs. Hong Leong Bank | Globetronics Tech vs. Public Bank Bhd | Globetronics Tech vs. Awanbiru Technology Bhd |
| Sports Toto vs. Magni Tech Industries | Sports Toto vs. PESTECH International Bhd | Sports Toto vs. SSF Home Group | Sports Toto vs. Cengild Medical Berhad |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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